The coming week is another busy one for initial public offerings (IPOs) with eight scheduled to price and begin trading this week. Here’s our look at what’s on offer.
JD.com Inc. is a Beijing-based online direct retailer that plans to offer 93.7 million American Depositary Shares (ADS) in a price range of $16 to $18 per ADS. One ADS equals two Class A ordinary shares. The company is offering 69 million ADSes and selling shareholders are offering 24.7 million. JD.com will not receive any proceeds from the shareholders’ sales.
The company faces formidable competition from both Alibaba’s Taobao.com and Amazon.com Inc. (NASDAQ: AMZN). JD.com has a deal with China’s other big online retailer, Tencent Holdings, that gives the company prominent access to Tencent’s mobile chat and messaging apps.
At the mid-point of the expected range, JD.com estimates that it will receive net proceeds of about $1.35 billion if the underwriters exercise their overallotment option and about $1.2 billion from a concurrent private placement of 138 million ordinary shares with a subsidiary of Tencent.
Underwriters, including BofA/Merrill Lynch, UBS, Allen & Co. LLC, Barclays, China Renaissance, and Jefferies, have been granted an option on an additional 14 million ADSes. JD.com is expected to price Wednesday and begin trading Thursday on the Nasdaq under the ticker symbol “JD”.
Solar panel maker SunEdison Inc. (NYSE: SUNE) is spinning off its wafer-making business into a new company called SunEdison Semiconductor Ltd. The Singapore-based company is offering 7.2 million ordinary shares in an expected price range of $13 to $15 a share.
SunEdison Semi estimates net proceeds of $90.2 million at the mid-point of the range. The company is also selling 7.1 million shares to a division of Samsung at the offering price which would add another $93.2 million to SunEdison Semi’s proceeds. The company will use the proceeds to repay about $18 million in indebtedness and the rest will be retained as cash which will be used for “liquidity and flexibility” in the company’s capital structure.
Underwriters include Deutsche Bank Securities, Goldman, Sachs & Co., Wells Fargo Securities, Macquarie Capital, and Citigroup. The underwriters have an option to purchase an additional 1.08 million shares at the IPO price. Shares are expected to price on Wednesday and begin trading Thursday on the Nasdaq under the ticker symbol “SEMI”.
Oil & gas exploration and production company Parsley Energy Inc. operating in the Permian Basin of west Texas plans to offer 43.9 million shares in an expected price range of $15 to $18 a share. Credit Suisse, Goldman Sachs, J.P. Morgan and Wells Fargo Securities are the joint bookrunners on the deal.
Parsley estimates net proceeds of $562.5 million at the mid-point of its expected range. Shares will are expected to price on Thursday and begin trading Friday on the New York Stock Exchange under the ticker symbol “PE”.
Other shares that are expected to begin trading this week include:
21st Century Oncology Holdings, an integrated network of cancer care centers and affiliated physicians, plans to sell 13.3 million shares in an expected range of $14 to $16 a share. The stock prices on Tuesday and begins trading Wednesday on the New York Stock Exchange under the ticker symbol “ICC”.
Agile Therapeutics Inc., a biotech firm that is developing an adhesive contraceptive, plans to sell 4.6 million shares in an expected price range of $12 to $14 a share. The stock prices on Wednesday and begins trading Thursday on the Nasdaq under the ticker symbol “AGRX”.
First Foundation Inc. is a wealth-manager and commercial bank that plans will offer 2.2 million shares at an expected price of $21 to $24 a share. The stock prices on Wednesday and begins trading on Thursday on the Nasdaq under the ticker symbol “FFWM”.
Heritage Insurance Holdings LLC., a residential insurance company, plans to offer 6 million shares in an expected price range of $14 to $16 million. The stock prices on Thursday and begins trading Friday on the New York Stock Exchange under the ticker symbol “HRTG”.
Superior Drilling Products Co. is a manufacturer and restorer of drill bits used in the oil & gas industry. The company plans to offer 5 million shares in an expected price range of $5 to $7. No date has been given for when the stock will price or begin trading. Shares will trade on the NYSE/Amex under the ticker symbol “SDPI”.