As the IPO markets continue to barrel ahead we have 5 that are scheduled to launch this week.If successful, September would be the year's most active month for IPOs. Nutanix's will be the IPO that gets the most attention, due to its growth, and scale. The other three notable IPOs this week offer various growth plays in the health care space, including a medical REIT, genetic test company and a provider of health support services.
Nutanix (NTNX ) has been waiting for the best opportunity to launch since December 2015. Nutanix hopes to raise $168 million with 14 million shares offered. The company is the leader in the rapidly-growing market for "hyperconverged" networking, and it will be the year's second big tech IPO after Twilio (TWLO ). Recently, IPO investors have been favorable toward high-loss, high-growth stories, and Nutanix has already posted three consecutive quarters of positive cash flow from operations.
MedEquities Realty Trust (MRT ) will be the week's largest IPO as the plan to raise $259 million by issuing almost 20 million shares at a range of $12-14. According to their filings, the REIT is concentrated both by geography (Texas and California make up 86%) and customers (the top 5 make up 97% of their base). The company also boasts an experienced management team, a portfolio of long-term triple-net leases and a 6.5% annualized yield.
Fulgent Genetics (FLGT ) is small but is showing fast growth in the genetic test space. They hope to raise $60 million by offering 4.6 million shares at a range of $12-14. According to their filings the company feels it is differentiated with its ability to handle more than 18,000 gene tests. The company grew sales by 82% in the second quarter, reaching almost $4 million with a 24% operating margin. Side Note: The seven diagnostics IPOs since 2015 average a return of -37%.
Tabula Rasa HealthCare (TRHC ) is also looking to raise $60 million. Tabula Rasa helps long-term care facilities avoid adverse drug events from mismanaged prescriptions. The company grew 32% in the first half of 2016, giving it annual sales of $80 million with an adjusted margin of 13%.
Full Spectrum (FMAX ) is looking to launch this week after delaying last weeks launch to this week. This micro-cap company, which sells products for private cellular networks is looking to raise $15 million.