Investing

IPO Preview: A Blizzard of New Offerings Next Week

IPO
Source: Thinkstock
As many as 11 companies could be holding initial public offerings (IPOs) next week. The firms run the gamut, from gamemaker King Digital to the billboard company spinning off from its parent. We’ve looked at three in some detail and listed the others.

King Digital Entertainment PLC is the Ireland-based maker of the hugely popular Candy Crush Saga game for mobile devices. The company expects to offer 22.2 million shares in a price range of $21 to $24 a share. At the $22.50 midpoint, the IPO would raise gross proceeds of $499.5 million and net proceeds of about $326 million. The company plans to use its proceeds for general corporate purposes, working capital and possible acquisitions.

The company is selling 15.5 million new shares, and existing shareholders will offer the remaining shares. The underwriters have a 30-day option on an additional 3.33 million shares from the selling shareholders. Lead underwriters are J.P. Morgan, Credit Suisse, and BofA Merrill Lynch.

The big question about King Digital is whether it can create a follow-up to its blockbuster Candy Crush game. This hurdle has not been an easy one for mobile game makers like Zynga Inc. (NASDAQ: ZYNG) or Glu Mobile Inc. (NASDAQ: GLUU) to leap over. King Digital’s stock will trade on the New York Stock Exchange under the ticker symbol “KING”. The stock is expected to price on Thursday and begin trading on Friday.

CBS Outdoor Americas Inc. is currently a wholly owned subsidiary of CBS Corp. (NYSE: CBS) which will offer 20 million shares in an anticipated price range of $26 to $28 a share. Following the tax-free spin-off, CBS Outdoor will become a REIT. CBS first announced plans for the spin-off in January 2013. Since then, share prices for outdoor advertising firms Lamar Advertising Co. (NASDAQ: LAMR) and Clear Channel Outdoor Holdings Inc. (NYSE: CCO) have risen about 30%.

Joint managers and co-managers of the offering include Goldman Sachs, BofA Merrill Lynch, J.P. Morgan, Morgan Stanley, Citigroup, Deutsche Bank Securities, and Wells Fargo Securities. The underwriters have a 30-day option on an additional 3 million shares. If the underwriters’ option is exercised, CBS Outdoor expects net proceeds of $593.1 million at the midpoint of the expected price range.

The shares will trade on the New York Stock Exchange under the ticker symbol “CBSO.” The IPO is expected price on Thursday, with shares starting trading on Friday.

TriNet Group Inc. is a provider of human resources software solutions for small- and medium-size businesses. The company plans to offer 15 million shares in an expected price range of $15 to $17. Lead underwriters for the IPO are J.P. Morgan, Morgan Stanley, and Deutsche Bank Securities. The underwriters have an option on an additional 2.25 million shares.

TriNet expects net proceeds of approximately $217.8 million at the midpoint of its price range, and the company expects to use the proceeds for general corporate purposes, including working capital, sales and marketing activities, and other uses. TriNet may also use some of the funds to acquire or invest in technologies, solutions, or businesses that complement its own business.

The shares are expected to price on Wednesday and begin trading on Thursday on the New York Stock Exchange under the ticker symbol “TNET.”

Here’s a brief look at the other IPOs tentatively on tap for this week.

1347 Property Insurance Holdings Inc. is a property and casualty insurance holding company that plans to offer 2.3 million shares in a price range of $10 to $12. Shares are expected to price on Tuesday and begin trading on Wednesday on the Nasdaq Capital Market under the ticker symbol “PIH.”

Nord Anglia Education is a Hong Kong-based operator of premium schools. The firm plans to offer 19 million shares in a price range of $15 to $17. Shares are expected to price on Tuesday and begin trading on Wednesday on the New York Stock Exchange under the ticker symbol “NORD.”

Applied Genetic Technologies Corp. is a biotech firm that will offer 3.57 million shares in an expected price range of $13 to $15 a share. Shares are expected to price on Wednesday and begin trading on the Nasdaq Global Market on Thursday under the ticker symbol “AGTC.”

Square 1 Financial Inc. is a financial services company that will offer 5.9 million shares in an anticipated price range of $15 to $17. Shares are expected to price Wednesday and begin trading on the Nasdaq Global Market on Thursday under the ticker symbol “SQBK.”

2U Inc. is an online education firm that plans to offer 9.2 million shares in an expected price range of $11 to $13. Shares are expected to price on Thursday and begin trading on the Nasdaq Global Market on Friday under the ticker symbol “TWOU.”

Aerohive Networks Inc. provides a cloud-based mobile networking platform and has filed to offer 7.5 million shares in a price range of $9 to $11. The shares are expected to price on Thursday and begin trading on the New York Stock Exchange on Friday under the ticker symbol “HIVE.”

Bluerock Residential Growth REIT Inc. is expected to offer 3.3 million shares at a price of $15 a share. The stock will begin trading on Friday on the NYSE MKT under the ticker symbol “BRG.”

Everyday Health Inc. offers online health and wellness solutions for consumers. The company plans to offer 7.2 million shares in an expected price range of $13 to $15. Shares are set to price on Thursday and begin trading on the New York Stock Exchange on Friday under the ticker symbol “EVDY.”