Ok IPO fan's this is your week. This week will be the years most active week as far as the number of IPO's. There are six scheduled IPO's this week, and if all successfully launch it will bring the total count for the month up to 16. If we reach this number it means the busiest month for IPO's since October of last year.
While all of this is good news, analysts still expect IPO investors to continue to make valuations a sticking point. Especially for those highly-levered deals which investors have been demanding a healthy return for their risk.
So let's get started on this week's potential IPO's:
Gypsum Supply and Management (NYSE: GMS) is the industry's leading distributor of wallboard (drywall) with a 13% market share. According to their filings, GMS has grown through acquisitions and the rebounding US construction market, similar to landscape supplies distributor SiteOne (NASDAQ: SITE), which went public earlier this month. The company plans to raise $154 million by selling 7 million shares at a range of $21-23 in order to pay down debt.
The largest IPO of the week will be US Foods Holding (NYSE: USFD). The company aims to raise $1 billion in the largest US IPO since First Data (NYSE: FDC) in October 2015. It is the largest IPO by sales ($23 billion) since October 2013. According to their financials, US Foods boasts strong margins and free cash flow, which it will use to pay down its massive debt load as the company attempts to improve organic growth. At the moment it looks like we can expect a range of $21-24.
There are two healthcare companies up for grabs this week as well. Reata Pharmaceuticals (NASDAQ: RETA) which hopes to raise $60 million (75% insider buying) at a market cap of $300 million will sell 4 million shares at a range of $14-16. The biotech raised $1 billion from AbbVie before its lead candidate failed a Phase 3 trial in 2013, but Reata believes that same candidate can be used to treat a new indication, pulmonary hypertension, based on positive Phase 2 results.
Clearside Biomedical (NASDAQ: CLSD), is shooting for a $60 million IPO by also offering 4 million shares at a range of $14-16. According to their filings, Clearside is developing formulations of approved therapies for the eye disease macular edema, a highly competitive space, delivered through its proprietary device.
Midland States Bancorp (NASDAQ: MSBI), which has nearly $3 billion in assets and 46 bank branches in and around Illinois, hopes to continue its acquisition-driven expansion by raising $101 million on Monday by offering 3.9 million shares at a $25-27 price range. The bank postponed an IPO in 2011, and since then has entered mortgage origination and wealth management in new areas.
Landcadia Holdings (NASDAQ: LCAHU), a blank check company formed by the CEOs of Landry's and Jefferies, is set to price its large $300 million offering in the week ahead.
Cancer Prevention Pharmaceuticals (NYSE: CPP), a micro-cap biotech, could price its IPO in the week ahead after it lowered the deal size on Friday by 35% to $16 million which would give it a $99 million market cap.