Investing

REIT IPOs Lead the Pack for Week of November 17

IPO
Source: Thinkstock
Of 14 scheduled initial public offerings (IPOs) last week, nine priced and began trading, four have been delayed and one was postponed. Including the holdovers, there are 13 IPOs to look forward to in the coming week.

IPO ETF manager Renaissance Capital reports that 252 IPOs have priced in the United States so far this year, up about 24% from a year ago. Total proceeds raised come to $78.5 billion, up more than 61% from 2013. To date in November, IPO proceeds have totaled $3.7 billion. Proceeds for the month of October totaled $5.8 billion. The 2013 IPO total came in at $54.9 billion, the highest total in the past 10 years.

Here are the eight new IPOs on tap for the week:

STORE Capital Corp. is an internally managed net-lease real estate investment trust (REIT) that acquires, invests in and manages single tenant operational real estate (STORE). The company plans to offer 27.5 million shares in an IPO price range of $17 to $19 to raise $495 million at a market cap of approximately $2 billion. Joint bookrunners for the offering are Goldman Sachs, Credit Suisse and Morgan Stanley. Co-managers include Citigroup, Deutsche Bank, KeyBanc Capital Markets, Wells Fargo Securities, Baird, BMO Capital Markets, Comerica Securities, Raymond James, Stifel and Suntrust Robinson Humphrey. The IPO is set to price on Monday and begin trading Tuesday on the New York Stock Exchange (NYSE) under the ticker symbol STOR.

Paramount Group Inc. is a REIT that owns, operates and manages high-quality Class A office properties in the central business districts of New York City, San Francisco and Washington, D.C. The company plans to offer 131 million shares at an IPO price of $16 to $19, raising about $2.29 billion on a market cap of $4.27 billion. Lead underwriters are Bank of America Merrill Lynch, Morgan Stanley, Wells Fargo Securities and Deutsche Bank. Co-managers include Citigroup, Credit Suisse, Goldman Sachs, J.P. Morgan, RBC Capital Markets and UBS Investment Bank. The IPO is scheduled to price on Tuesday and begin trading Wednesday on the NYSE under the ticker symbol PGRE.

Cnova N.V. is a Netherlands-based, global e-commerce company. The company is offering 26.8 million shares in an expected price range of $12.50 to $14.00 to raise $355 million at a market value of $5.82 billion. Joint bookrunners for the offering are Morgan Stanley, J.P. Morgan, Merrill Lynch, Credit Suisse and Deutsche Bank. Co-managers include BNP Paribas, HSBC Corp., Natixis and Societe Generale. The IPO is scheduled to price on Wednesday and begin trading Thursday on the Nasdaq under the ticker symbol CNV.

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Habit Restaurants Inc. is a fast-casual restaurant chain that specializes in preparing fresh, made-to-order char-grilled burgers and sandwiches. A Consumer Reports poll of customers recently rated the company’s hamburgers as the best. The company plans to offer 5 million shares in an IPO price range of $14 to $16, raising $75 million at a market cap of about $379 million. Joint bookrunners for the offering include Piper Jaffray, Baird, Wells Fargo Securities and Raymond James. Co-managers are Stephens and Stifel. The IPO is scheduled to price on Wednesday and begin trading Thursday on the Nasdaq under the ticker symbol HABT.

Neothetics Inc. is a clinical-stage specialty pharmaceutical company developing therapeutics for the aesthetic market. The company plans to offer 4.3 million shares in an IPO price range of $13 to $15 to raise about $60 million on a market cap of approximately $186 million. Joint bookrunners are Piper Jaffray and Guggenheim Securities, and Needham is co-manager. The IPO is scheduled to price on Wednesday and begin trading Thursday on the Nasdaq under the ticker symbol NEOT.

Adama Agricultural Solutions Ltd. is an Israel-based off-patent crop protection solutions company. The company plans to offer 23.5 million shares in an expected price range of $16 to $18 to raise $400 million at a market cap of about $2.75 billion. Joint bookrunners are Goldman Sachs, Merrill Lynch, Citigroup, Credit Suisse, Deutsche Bank, HSBC and J.P. Morgan. Co-managers are Piper Jaffray and Rabo Securities. The IPO is scheduled to price on Thursday and begin trading Friday on the NYSE under the ticker symbol ADAM.

Neff Corp. is regional equipment leasing company focused on the Sunbelt states. The company plans to offer 10.5 million shares in an IPO price range of $20 to $22, raising $220 million at a market cap of approximately $489 million. The joint bookrunners are Morgan Stanley, Jefferies, Piper Jaffray and Merrill Lynch. Co-manager is Wells Fargo Securities. The IPO is scheduled to price on Thursday and begin trading Friday on the NYSE under the ticker symbol NEFF.

Peak Resorts Inc. is ski resort operator with 13 properties primarily located in the Northeast and Midwest. The company plans to offer 10 million shares in an expected price range of $9 to $11, raising $100 million at a market value of about $140 million. Joint bookrunners for the offering are FBR Capital Markets, Stifel and Baird. Co-managers are Janney Montgomery Scott and Oppenheimer. The IPO is scheduled to price on Thursday and begin trading Friday on the Nasdaq under the ticker symbol SKIS.

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The five holdovers from last week include:

eHi Car Services Ltd. is a car services and rental provider based in Shanghai. The firm plans to offer 10 million American depositary shares (ADSs) in an IPO price range of $12 to $14, raising $130 million at a market cap of about $740 million. Each ADS represents two shares of common stock. Joint bookrunners for the offering are J.P. Morgan and Goldman Sachs (Asia). The ADSs are scheduled to price on Monday and to begin trading Tuesday on the NYSE under the ticker symbol EHIC.

CVSL Inc., a direct sales/micro-enterprise company building an online community of entrepreneurs and their customers, is changing its listing from the OTCQX marketplace to the New York Stock Exchange MKT. The company recently effected a 20-for-one reverse split and plans to offer 6.7 million shares of common stock at $13 per share on the NYSEMKT under the ticker symbol CVSL. Shares are currently trading on the OTCQX under the ticker symbol CVSLD. Joint managers for the offering are Cantor Fitzgerald, JMP Securities and Janney Montgomery Scott.

Harmony Merger Corp. is a blank check company that plans to offer 10 million units (one share of common stock and one warrant to purchase three-quarters of one share of common stock on the consummation of an initial business combination) at $10 per unit to raise $100 million. The sole underwriter of the offering is Cantor Fitzgerald. Units are now expected to price and begin trading in the week of November 17 on the Nasdaq under the ticker symbol HRMNU. More details are available in the company’s amended Form S-1 filing.

S1 Biopharma Inc. is a clinical-stage biopharmaceutical company focused on the development and commercialization of novel, first-in-class therapies for sexual dysfunction. The company plans to offer 2.8 million shares in an IPO price range of $12 to $14 to raise about $36 million at a market cap of around $119 million. The sole bookrunner is MLV. Shares have no scheduled pricing date other than the week of November 17, and they will be traded on the Nasdaq under the ticker symbol SXB.

Viking Therapeutics Inc. is a clinical-stage biopharmaceutical company based in California and focused on developing therapies for metabolic and endocrine disorders. The company first planned its IPO for the week of September 22. Viking plans to offer 5 million shares in a price range of $10 to $12, raising $55 million at a market cap of about $167 million. The IPO continues to be listed as day-to-day. Shares will trade on the Nasdaq under the ticker symbol VKTX.

The one postponed IPO from last week was PolyPid Ltd., an Israel-based specialty pharmaceutical company engaged in research and development of product candidates based on its proprietary drug delivery technology.

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