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14 US IPOs planned for the week of September 22, including the year's second-largest

On the heels of Alibaba's ( BABA ) successful debut , the upcoming week could prove to be a litmus test for the IPO market, with 14 deals expected to raise $7 billion. Of course, the ability to absorb the largest offering ever is a positive sign for upcoming IPOs. Yet the 140+ deals in the pipeline should draw more comparisons with this week's 14, which represent a a diverse group of industries (finance, tech, consumer, energy, biotech) and backers (venture, private equity, spinoffs). Another positive sign for IPO demand: The Renaissance IPO ETF continues to trade at the high end of its year-to-date range.

Three finance IPOs including Citizens, the year's second-largest US IPO

Citizens Financial ( CFG ), the US banking spinoff of RBS with over 1,200 branches, is expected to raise $3.4 billion if it prices on Tuesday. While the nine bank IPOs this year have underperformed the broader IPO market, Citizens is larger than the previous nine combined in terms of market cap and deal size.

Grupo Aval (AVAL), Colombia's largest bank with $86 billion in assets, is expected to raise about $1.1 billion by floating ADSs representing preferred shares that are currently listed on the Colombia Stock Exchange. Another Latin America IPO, Atento (ATTO), is set to price next week.

Medley Asset Management (MDLY), a credit-focused asset manager with $3.3 billion AUM, is expected to price on Tuesday. The $126 million IPO candidate manages Medley Capital ( MCC ) and Sierra Income Corporation. The company is run by Co-CEOs/Co-Chairmen/twins Brook and Seth Taube, who will control the company through Class B shares. The year's other financial management company, Ares Management LP (ARES), trades 6% below its IPO price. Another asset manager, Old Mutual spinoff OM Asset Management (OMAM), appears close to launching its IPO as the company recently added co-managers in its fourth amended prospectus.

One LBO'd grocery chain

Smart & Final Stores (SFS) is set to raise $175 million on Tuesday and begin trading Wednesday. The ware-house style grocery chain with 250 stores in the Western US was LBO'd by May IPO Ares Management. The company carries concentration risk with over 90% of sales in California, yet that didn't stop El Pollo Loco from leaping over 100% above its IPO price. The IPO could perform well if investors believe in its national expansion and continued comp growth.

Two technology IPOs

CyberArk Software (CYBR) offers enterprise software that monitors the activity of privileged accounts (like the head of IT) for unusual behavior, a common target for cyber attacks. Based in Israel, CyberArk could benefit from interest in security and high-growth enterprise software, such as Palo Alto Networks and FireEye. Other enterprise software companies HubSpot (HUBS) and Yodle (YO) appear ready to launch; Yodlee (YDLE) set terms on Monday morning for an IPO expected to price next week.

Travelport Worldwide (TVPT), which expects to raise $450 million, is the travel industry's third-largest global distribution system. With a 26% market share (including Delta Airlines' reservation and inventory management system), it is behind Amadeus and April IPO Sabre (SABR, up 18%). Travelport was originally carved out of Cendant by Blackstone in 2006, and in 2013, debt holders Angelo, Gordon and Co., Q Investments and Morgan Stanley converted their stake to equity. Other air travel IPOs on the horizon include Virgin America (VA) and Avolon Holdings (AVOL).

Two large energy IPOs in the Marcellus Shale

Formed by CONSOL ( CNX ) and Noble Energy ( NBL ) to operate pipelines in the Marcellus Shale, CONE Midstream Partners LP (CNNX) is expected to raise $350 million on Wednesday post-close. MLPs have done well this year as investors seek yield with growth potential. Midstream IPOs Antero Midstream and JP Energy Partners LP, both on file for over three months, recently updated filings and could soon launch fourth quarter offerings.

Vantage Energy (VEI) is set to price its $601 million IPO on Wednesday. Backed by Quantum Energy Partners, Riverstone and Limerock (selling 33% of the offering), the high-growth E&P owns nearly 100,000 acres in the Marcellus and Barnett Shale. Oil and gas IPOs in 2014 have generally traded up, including Marcellus Shale E&P Rice Energy (RICE). Oil and gas sand provider FMSA Holdings (FMSA; Fairmount Santrol) set terms on September 22 for a $1 billion IPO expected to price during the week of September 29.

Two new biotechs: Parkinson's and diabetes/Alzheimer's

Vitae Pharmaceuticals (VTAE) touts its artificial intelligence and algorithm-driven discovery technology, which allows the company to model optimal small molecules for a variety of blockbuster indications. Expected to raise $60 million when it prices on Tuesday, the early-stage type 2 diabetes and Alzheimer's biotech has insiders (including Prospect, NEA, Venrock, Atlas) buying almost 20% of the deal.

Civitas Therapeutics (CVTS) is expected to raise $75 million when it prices on Wednesday evening and could command a valuation of $403 million, about double that of Vitae. Civitas has completed Phase 2b trials for an inhaler that treats unpredictable "off" episodes of Parkinson's disease and plans to quicken its approval through the 505(b)(2) pathway. Shareholders intend to purchase $20 million on the offering (27%) and include Longitude Capital, Canaan Partners, Bay City Capital, Fountain Capital, Alkermes and Wellington Management

It is worth noting that the past 3 biotechs have experienced erratic first-day trading with heavy volume; a possible cause could be the reduced float associated with insider buying.

Two delayed biotechs

rEVO Biologics (RBIO) hopes to develop its recombinant protein (currently approved to treat a rare blood disorder) as it enters Phase 3 trials for preeclampsia, a serious pregnancy disorder. Like many biotechs, rEVO has accumulated a large deficit and investors must bet that its drug will be approved and adopted.

Viking Therapeutics (VKTX) licenses small molecule drugs from Ligand Pharma (its largest shareholder) and plans Phase 2b trials for diabetes next year.

Both rEVO and Viking were on the calendar for last week, but pushed back their offer dates.

* US offering of ADSs representing preferred shares listed on the Colombia Stock Exchange

** US offering of common shares dual listed on the Tel Aviv Stock Exchange

The following IPOs are expected to price this week :

Citizens Financial Group ( CFG ), the US banking arm of RBS with 1,230 branches across the Northeast and Midwest, plans to raise $3.4 billion by offering 140.0 million shares at a price range of $23 to $25. At the midpoint of the proposed range, it would command a market value of $13.4 billion. Citizens Financial, which was founded in 1828, booked $5.0 billion in sales over the last 12 months. The Providence, RI-based company plans to list on the NYSE under the symbol CFG. Morgan Stanley, Goldman Sachs, J.P. Morgan and Barclays are the joint bookrunners on the deal.

Civitas Therapeutics (CVTS), a biotech developing an inhaler to treat re-emerging "off" episodes of Parkinson's disease, plans to raise $75 million by offering 5.0 million shares at a price range of $14 to $16. At the midpoint of the proposed range, it would command a market value of $403 million. Civitas, which was founded in 2009, booked $0 million in sales over the last 12 months. The Chelsea, MA-based company plans to list on the NASDAQ under the symbol CVTS. J.P. Morgan and BofA Merrill Lynch are the joint bookrunners on the deal.

CONE Midstream Partners LP (CNNX), an MLP formed by CONSOL and Noble to own pipelines in the Marcellus Shale, plans to raise $350 million by offering 17.5 million shares at a price range of $19 to $21. At the midpoint of the proposed range, it would command a market value of $1.2 billion. CONE Midstream, which was founded in 2011, booked $93 million in sales over the last 12 months. The Canonsburg, PA-based company plans to list on the NYSE under the symbol CNNX. Wells Fargo Securities, BofA Merrill Lynch, Citi and J.P. Morgan are the joint bookrunners on the deal.

CyberArk Software (CYBR), which provides enterprise software that detects cyber attacks on privileged accounts, plans to raise $75 million by offering 5.4 million shares at a price range of $13 to $15. At the midpoint of the proposed range, it would command a market value of $470 million. CyberArk, which was founded in 1999, booked $76 million in sales over the last 12 months. The Petach Tikva, Israel-based company plans to list on the NASDAQ under the symbol CYBR. J.P. Morgan, Deutsche Bank and Barclays are the joint bookrunners on the deal.

DT Asia Investments (CADTU), a blank check company formed to acquire a middle-market growth business in China, plans to raise $60 million by offering 6.0 million units at $10 per unit. At that price, it would command a market value of $79 million. The recently-formed Hong Kong-based company plans to list on the NASDAQ under the symbol CADTU. EarlyBird Capital is the sole bookrunner on the deal.

Grupo Aval Acciones y Valores S.A. (AVAL), Colombia's largest banking group with $86 billion in total assets, plans to raise $1.1 billion by offering 73.5 million ADSs representing 20 preferred shares that currently trade on the Colombia Stock Exchange under ticker PFAVAL ($14.96 as of the most recent filing). It originally filed and withdrew an offering in 2013. The company commands a market value of about $15 billion. Grupo Aval, which was founded in 1994, booked $5.4 billion in sales over the last 12 months. The Bogotá D.C., Colombia-based company plans to list on the NYSE under the symbol AVAL. J.P. Morgan, Goldman Sachs, Citi and Morgan Stanley are the joint bookrunners on the deal.

Israel Chemicals (ICL), a potash and fertilizer producer spun off of Israel Corporation, plans to raise $459 million by offering 62 million shares at the stock's current price on the Tel Aviv Stock Exchange ($7.41 as of the most recent filing). The company commands a market value of about $10 billion. Founded in 1968, Israel Chemicals booked $6 billion in sales over the last 12 months. Morgan Stanley, Barclays, Deutsche Bank and Goldman Sachs are the joint bookrunners on the deal.

Medley Management (MDLY), a credit-focused asset manager with $3.3 billion of AUM, plans to raise $126 million by offering 6.0 million shares at a price range of $20 to $22. At the midpoint of the proposed range, it would command a market value of $642 million. Medley Management, which was founded in 2006, booked $60 million in sales over the last 12 months. The New York, NY-based company plans to list on the NYSE under the symbol MDLY. Goldman Sachs, Credit Suisse, Barclays and Deutsche Bank are the joint bookrunners on the deal.

rEVO Biologics (RBIO) , a biotech developing a recombinant protein for the treatment of preeclampsia, plans to raise $50 million by offering 3.6 million shares at a price range of $13 to $15. At the midpoint of the proposed range, rEVO Biologics would command a market value of $261 million. Parent LFB Biotech plans to purchase $10 million worth of shares in the offering (20% at the midpoint) and $10 million in a private placement. rEVO Biologics, which was founded in 1993, booked $18 million in sales for the 12 months ended June 30, 2014. The Framingham, MA-based company plans to list on the NASDAQ under the symbol RBIO. Piper Jaffray and Guggenheim Securities are the joint bookrunners on the deal.

Smart & Final Stores (SFS), an Ares-backed warehouse-style grocery chain with 250 locations in the Western US, plans to raise $175 million by offering 13.5 million shares at a price range of $12 to $14. At the midpoint of the proposed range, Smart & Final Stores would command a market value of $1.0 billion. Smart & Final Stores, which was founded in 1871, booked $3.3 billion in sales over the last 12 months. The Commerce, CA-based company plans to list on the NYSE under the symbol SFS. Credit Suisse, Morgan Stanley, Deutsche Bank and Barclays are the joint bookrunners on the deal.

Travelport Worldwide (TVPT), which operates the third-largest global distribution system for the travel industry, plans to raise $450 million by offering 30 million shares at a price range of $14 to $16. At the midpoint of the proposed range, it would command a market value of $1.8 billion. Travelport, which was founded in 2006, booked $2.1 billion in sales over the last 12 months. The Atlanta, GA-based company plans to list on the NYSE under the symbol TVPT. Morgan Stanley, UBS Investment Bank, Credit Suisse and Deutsche Bank are the joint bookrunners on the deal.Please note: Previously filed for a $2 billion IPO on the London Stock Exchange in 2010 but later withdrew.

Vantage Energy (VEI), a oil and gas E&P operating in the Marcellus and Barnett Shale, plans to raise $601 million by offering 23.6 million shares at a price range of $24 to $27. At the midpoint of the proposed range, Vantage Energy would command a market value of $1.9 billion. Vantage Energy, which was founded in 2006, booked $48 million in sales over the last 12 months. The Englewood, CA-based company plans to list on the NYSE under the symbol VEI. Barclays, Goldman Sachs, Citi and Credit Suisse are the joint bookrunners on the deal.

Viking Therapeutics (VKTX) , a biotech developing treatments for diabetes and other metabolic and endocrine disorders, plans to raise $55 million by offering 5 million shares at a price range of $10 to $12. At the midpoint of the proposed range, Viking Therapeutics would command a market value of $167 million. The San Diego, CA-based company, which was founded in 2012, plans to list on the NASDAQ under the symbol VKTX. Oppenheimer and Roth Capital are the joint bookrunners on the deal.

Vitae Pharmaceuticals (VTAE), which is developing small molecule drugs for type 2 diabetes and Alzheimer's, plans to raise $60 million by offering 5.0 million shares at a price range of $11 to $13. At the midpoint of the proposed range, it would command a market value of $198 million. Vitae Pharmaceuticals, which was founded in 2001, booked $23 million in sales over the last 12 months. The Fort Washington, PA-based company plans to list on the NASDAQ under the symbol VTAE. Stifel and BMO Capital Markets 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.

Cast your vote for these upcoming IPOs.

IPO market snapshot

Last week, there were 5 IPO pricings . Alibaba ( BABA ), the world's largest e-commerce company and the largest IPO to date, was the week's winner, ending up 38% from its IPO price. Representing over 80% of online retail in China, Alibaba's IPO offered a unique way to invest in the country's rapid shift toward internet usage and a consumer economy.

So far this year, 195 IPOs have raised $62.4 billion and produced an average first day return of 14%. The Renaissance IPO ETF (symbol: IPO ), a float cap-weighted basket of newly public companies and indicator of post-IPO performance, has gained 7.8% compared with 8.8% for the S&P 500. Over the last 30 days, the IPO ETF has risen 3.2% compared with 1.5% for the S&P 500, and is scheduled to add Alibaba as its top holding after the market closes on Thursday, September 25. The active IPO pipeline includes 143 companies looking to raise a total of $35 billion.

The article 14 US IPOs planned for the week of September 22, including the year's second-largest originally appeared on IPO investment manager Renaissance Capital's web site renaissancecapital.com.

Investment Disclosure: The information and opinions expressed herein were prepared by Renaissance Capital's research analysts and do not constitute an offer to buy or sell any security. Renaissance Capital, the Renaissance IPO ETF (symbol: IPO) or the Global IPO Fund (symbol: IPOSX) , may have investments in securities of companies mentioned.

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


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

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