11 US IPOs planned for the week of Aug 4

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11 offerings are scheduled to kick off the first full week of August, a month that should see a sharp slowdown in IPO activity following the busiest month since 2000 (July had 34 IPOs, including 15 last week ). While the IPO market takes a break in the second half of August, it should pick right up again with the initial public offering of Chinese e-commerce behemoth Alibaba ( BABA ), which could raise as much as $20 billion and go public in early September.

First Chinese IPO of the 3Q
The second quarter saw 10 Chinese IPOs, 8 were tech-based, and the group has had some of the year's strongest post-IPO trading. No China-based company went public in the US in July, but mobile game publisher iDreamSky ( DSKY ) should be the first one in the third quarter.

4 biotech holdovers from last week
Even after the NASDAQ Biotech index fell nearly 6% in the past month, it still trades up over 10% year-to-date, partially explaining last week's milestone of the 50th biotech IPO of 2014. Low investor demand caused five of the six to end the week at or below their IPO price, and four more biotechs were pushed back to this week.

Auris Medical ( EARS ), the largest of the group, could face competition from Otonomy (OTIC), an ear-related biotech on the calendar for next week. Zosano ( ZSAN ), a transdermal osteoporosis biotech, could face a technical hurdle based on the valuation pushback and rocky performance of transdermal peer Corium (CORI, IPO'd in April) and osteoporosis biotech Radius Health (RDUS, June).  Tobira Therapeutics ( TBRA ) is developing an immunotherapy platform for NASH and HIV, but recent immunotherapy IPOs Loxo Oncology (LOXO) and Immune Design (IMDZ) both trade at the IPO price. The fourth biotech, Microlin Bio (MCLB) has repeatedly delayed its offering, though time is running out before the IPO market's August break.

1 Goldman-backed diagnostics company
Well-known backers like Goldman Sachs (also the lead underwriter) and Polaris Partners could help the IPO of T2 Biosystems, especially with insiders buying on the IPO. The company develops early screening for hospitals' costliest condition, sepsis.

2 energy infrastructure IPOs
Hoegh LNG Partners LP (HMLP), an owner of floating LNG storage and regasification units, may see interest based on the strong performance of LNG IPOs. LNG carrier spinoff GasLog Partners (GLOP) has traded up 62% since its May IPO and last year's Dynagas LNG Partners LP (DLNG) is up 29%. Independence Contract Drilling (ICD) could also benefit from the success of recent Permian-based energy IPOs, including RSP Permian, Parsley Energy and Viper Partners.

2 small financial firms
Financial firms have had weak performance this year, most recently last week's FCB Financial (FCB, down 5%) and Synchrony Financial (SYF, 0%). GWG Holdings (GWG) must convince investors that its losses from life insurance policy revaluations were a one-time misjudgment. Green Bancorp (GNBC) must overcome the poor trading of bank IPOs this year. No other Texas banks have gone public in 2014, so Green Bancorp could stand out based on the state's booming economy.

LBO'd steel producer; the longest waiting IPO on file
Ryerson Holding (RYI), a steel producer that had been in the IPO pipeline over 4 years, is finally expected to price. However, 68% of the year's 19 LBOs trade below their IPO price, and just as many saw their valuations cut below the range including industrial companies Advanced Drainage Systems (WMS, -6%), Orion Engineered Carbons (OEC, -8%) and Trinseo (TSE, -12%).

The following  IPOs are expected to price this week

Auris Medical  ( EARS ), a biotech developing treatments for tinnitus and other inner ear disorders, plans to raise $76 million by offering 6.9 million shares at a price range of $10.00 to $12.00. At the midpoint of the proposed range, Auris Medical would command a market value of $285 million. Auris Medical, which was founded in 2003, booked $0 million in sales over the last 12 months. The Zug, Switzerland-based company plans to list on the NASDAQ under the symbol EARS. Jefferies & Co. and Leerink Partners are the joint bookrunners on the deal.

Green Bancorp  (GNBC), a Texas bank with 12 branches in the Houston, Dallas and Austin MSAs, plans to raise $75 million by offering 4.7 million shares at a price range of $15 to $17. At the midpoint of the proposed range, it would command a market value of $428 million. Green Bancorp, which was founded in 2006, booked $65 million in interest and noninterest income over the last 12 months. The Houston, TX-based company plans to list on the NASDAQ under the symbol GNBC. Sandler O'Neill and Jefferies are the joint bookrunners on the deal.

GWG Holdings  (GWGH), which holds a portfolio of life insurance policies worth over $250 million, plans to raise $20 million by offering 1.6 million shares at a price range of $11.50 to $13.50. At the midpoint of the proposed range, it would command a market value of $112 million. GWG Holdings, which was founded in 2006, booked $30 million in revenue over the last 12 months. The Minneapolis, MN-based company plans to list on the NASDAQ under the symbol GWGH. MLV is the lead bookrunner on the deal.

Hoegh LNG Partners LP  (HMLP), an MLP formed by Höegh LNG to own three floating storage and regasification units, plans to raise $192 million by offering 9.6 million shares at a price range of $19 to $21. At the midpoint of the proposed range, it would command a market value of $526 million. Hoegh LNG Partners LP, which was founded in 2014, booked $41 million in sales over the last 12 months. The Oslo, Norway-based company plans to list on the NYSE under the symbol HMLP. Citi, BofA Merrill Lynch, Morgan Stanley and Barclays are the joint bookrunners on the deal.

iDreamSky Technology  ( DSKY ), a Chinese mobile game publisher with 100 million monthly active users, plans to raise $100 million by offering 7.7 million shares at a price range of $12 to $14. At the midpoint of the proposed range, it would command a market value of $602 million. iDreamSky Technology, which was founded in 2009, booked $65 million in sales over the last 12 months. The Shenzhen, China-based company plans to list on the NASDAQ under the symbol DSKY. Credit Suisse, J.P. Morgan and Stifel are the joint bookrunners on the deal.

Independence Contract Drilling  (ICD), which operates nine contracted land drilling rigs for E&Ps in the Permian Basin, plans to raise $150 million by offering 10.0 million shares at a price range of $14 to $16. At the midpoint of the proposed range, it would command a market value of $346 million. Independence Contract Drilling, which was founded in 2012, booked $48 million in sales over the last 12 months. The Houston, TX-based company plans to list on the NYSE under the symbol ICD. Morgan Stanley, RBC Capital Markets and Tudor, Pickering, Holt are the joint bookrunners on the deal.

Microlin Bio  (MCLB), a diagnostic and therapeutics biotech focusing on microRNA and its role in oncology, plans to raise $28 million by offering 5.5 million shares at a price range of $4.50 to $5.50. At the midpoint of the proposed range, it would command a market value of $51 million. The New York, NY-based company, which was founded in 2013, plans to list on the NASDAQ under the symbol MCLB. Brean Capital and Summer Street Research Partners are the joint bookrunners on the deal. The company revised terms for the fourth time on July 3 and added warrants. It originally planned to offer 3.6 million shares at a range of $6 to $8.

Ryerson Holding  (RYI), the second largest metals distributor in North America, plans to raise $204 million by offering 11.0 million shares at a price range of $17 to $20. At the midpoint of the proposed range, it would command a market value of $593 million. Ryerson, which was founded in 1842, booked $3.4 billion in sales over the last 12 months. The Chicago, IL-based company plans to list on the NYSE under the symbol RYI. BofA Merrill Lynch, Deutsche Bank, BMO Capital Markets and J.P. Morgan are the joint bookrunners on the deal. The company previously set terms to go public in May 2010 at a $1.2 billion market cap.

T2 Biosystems  (TTOO), which is developing diagnostics tests that screen for sepsis and hemostasis, plans to raise $64 million by offering 4.0 million shares at a price range of $15 to $17. At the midpoint of the proposed range, would command a market value of $321 million. T2 Biosystems, which was founded in 2006, has not yet generated revenue. The Lexington, MA-based company plans to list on the NASDAQ under the symbol TTOO. Goldman Sachs and Morgan Stanley are the joint bookrunners on the deal.

Tobira Therapeutics  ( TBRA ), a biotech developing an immunotherapy treatment for liver disease (NASH) and HIV, plans to raise $60 million by offering 4.6 million shares at a price range of $12 to $14. At the midpoint of the proposed range, it would command a market value of $150 million. The San Francisco, CA-based company, which was founded in 2006, plans to list on the NASDAQ under the symbol TBRA. BMO Capital Markets, JMP Securities and Oppenheimer are the joint bookrunners on the deal.

Zosano Pharma  ( ZSAN ), a biotech developing a transdermal delivery system to treat osteoporosis, plans to raise $70 million by offering 6.4 million shares at a price range of $10 to $12. At the midpoint of the proposed range, it would command a market value of $139 million. Zosano Pharma, which was founded in 2007, booked $3 million in revenue over the last 12 months. The Fremont, CA-based company plans to list on the NASDAQ under the symbol ZSAN. Wedbush PacGrow, Ladenburg Thalmann and Roth Capital are the joint bookrunners on the deal.

Renaissance Capital will have Pre-IPO Research available on each of these upcoming IPOs prior to its pricing.

Last week, there were 15 IPO pricings . Mobileye (MBLY), an Israeli developer of Advanced Driver Assistance Systems, and Avalanche Biotechnologies (AAVL), an early-stage biotech developing a gene therapy for wet AMD, were the week's winners, ending up 48% from their IPO price.




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: News Headlines , IPOs

Referenced Stocks: BABA , DSKY , EARS , ZSAN , TBRA

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