Last week there were only three initial public offerings (IPOs) on the calendar. None of the three actually made it out the door, though. One, KineMed, has been postponed and may be withdrawn. This week we have two holdovers from last week plus nine additions to the IPO hopefuls’ list.
To repeat last week’s summary, the year to date has been a massive success for IPOs. According to Renaissance Capital, 148 IPOs have priced in the United States so far this year, up nearly 61% from a year ago. Total proceeds raised come to $31.5 billion, up more than 52% from 2013. In the month of June, IPO proceeds totaled $8 billion, tied with April for the highest monthly total so far this year. The 2013 IPO total came in at $54.9 billion, the highest total in the past 10years. So far in 2014 IPOs have put $31.5 billion into the coffers of new publicly traded companies.
The largest IPO on this week’s calendar is TerraForm Power Inc., another spin-off from SunEdison Inc. (NYSE: SUNE). TerraForm is being created to own and operate clean energy power generation assets it will acquire from SunEdison and other companies as a so-called yieldco. TerraForm’s IPO follows by about a month the IPO of Abengoa Yield PLC (NASDAQ: ABY), which priced above its range and closed its opening day of trading up about 28%.
The company plans to offer 20.1 million shares in an expected price range of $19 to $21. At the mid-point of the range proceeds will total $400.1 million and TerraForm’s market value would be around $2 billion. SunEdison will retain nearly 95% of the voting power in the company, which is expected to price shares on Thursday and begin trading Friday on the Nasdaq under the ticker symbol TERP.
Here is a brief look at the other IPOs due in the coming week.
CareDX Inc. is a commercial stage diagnostics company that offers a product for heart transplant patients. The company plans to offer 6.3 million shares in an expected price range of $11 to $13. Shares are expected to price on Thursday and begin trading Friday on the Nasdaq under the ticker symbol GLOB.
Globant S.A. offers outsourced IT work to businesses that need assistance with cloud, mobile and big data applications. Globant is domiciled in Luxembourg but is based in Argentina. The company plans to offer 3.1 million shares in an expected price range of $15 to $17. Shares are expected to price on Thursday and begin trading Friday on the New York Stock Exchange (NYSE) under the ticker symbol CDNA.
iRadimed Corp. develops, manufactures and sells MRI-compatible products and claims to be the global leader in sales of non-magnetic IV infusion pump systems. The company plans to sell 1.8 million shares in a price range of $5 to $6. No specific dates are listed for pricing or the start of trading. The shares will trade on the Nasdaq under the ticker symbol IRMD.