IPO Week Ahead: GE Spins Out Synchrony in a Whirl of 22 IPOs

July 26, 2014 by Paul Ausick

We have counted 22 initial public offerings (IPOs) on the schedule for this week, including just two holdovers from last week. Of the dozen companies that actually made it to the markets last week, Friday’s IPO of El Pollo Loco Holdings Inc. (NASDAQ: LOCO) led the charge, going out at $15 and closing the day at $24.03, up 60%.

This week’s most closely watched IPO will be General Electric Co.’s (NYSE: GE) spin-off of its North American financial business into a new company called Synchrony Financial. GE plans to offer 125 million shares in Synchrony at an IPO price of $23 to $26. The IPO shares represent a stake of 15% in the company and is expected to raise $3 billion in gross proceeds, valuing the new company at around $20 billion. Joint book-running managers are Goldman Sachs & Co., J.P. Morgan, Citigroup, Morgan Stanley, Barclays, Bank of America Merrill Lynch, Credit Suisse and Deutsche Bank Securities. The underwriters have an option on an additional 18.75 million shares. Shares are expected to price on Wednesday and begin trading Thursday on the New York Stock Exchange (NYSE) under the ticker symbol SYF.

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A second large IPO is planned by medical delivery technology firm Catalent Inc. which plans to offer 42.5 million shares of common stock in a price range of $19 to $22. The company expects to raise around $871 million in the IPO. Shares are expected to price on Wednesday and begin trading Thursday on the NYSE under the ticker symbol CTLT.

Another IPO looking at a big payday is Mobileye N.V., which designs and develops software and other technologies for advanced driver assistance systems, one of the major building blocks of driverless cars, or as some now call it “autonomous driving.” The Israel-based company plans to offer 27.8 million shares in an IPO price range of $17 to $19, raising a total of nearly $500 million. The shares are set to price on Thursday and begin trading Friday on the NYSE under the ticker symbol MBLY.

Transocean Partners LLC is a spin-off from Switzerland-based Transocean Ltd. (NYSE: RIG). The company plans to sell 17.5 million common units in a price range of $19 to $21, raising $350 million. Shares are expected to price on Wednesday and begin trading Thursday on the NYSE under the ticker symbol RIGP. The company will be domiciled in Scotland.

London-based VTTI Energy Partners L.P. plans to sell 17.5 million common units in an IPO range of $19 to $21 to raise about $350 million. The company is among the world’s largest energy terminals businesses and is majority owned by global commodity trader Vitol and Malaysia International Shipping Corp. Common units in the master limited partnership (MLP) are expected to price on Thursday and begin trading Friday on the NYSE under the ticker symbol VTTI.

Here is a rundown of the other IPOs on tap next week:

Zosano Pharma Corp. is a clinical stage specialty pharmaceutical company that has developed a proprietary transdermal microneedle patch system to deliver its existing drugs through the skin. The company plans to offer 6.4 million shares in a price range of $10 to $12 and expects to raise gross proceeds of around $70 million. The pricing and trading dates are not set. The stock will trade on the Nasdaq under the ticker symbol ZSAN.

ContraFect Corp. is a biotechnology company developing treatments for drug-resistant infectious diseases. The company plans to issue 5.5 million units consisting of one share of common stock, one Class A warrant to purchase one additional share of common stock, and one Class B warrant to purchase one-half additional share of common stock. The expected price range is $5 to $6, raising $30 million. The stock, Class A warrants, Class B warrants and units will trade on the Nasdaq under the ticker symbols CFRX, CFRXW, CFRXZ and CFRXU, respectively. The units are expected to price on Tuesday and begin trading Wednesday.

Lantheus Holdings Inc. makes imaging agents for medical diagnostics. The company plans to offer 9.3 million shares in a price range of $12 to $15, raising $125 million. The shares are expected to price on Tuesday and begin trading Wednesday on the Nasdaq under the ticker symbol LNTH.

Westlake Chemical Partners L.P. is a spin-off MLP from Westlake Chemical Corp. (NYSE: WLK) that will acquire and develop ethylene production facilities and assets. The company plans to offer 11.3 million common units in a price range of $19 to $21, raising $225 million. Shares are expected to price on Tuesday and begin trading Wednesday on the NYSE under the ticker symbol WLKP.

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Avalanche Biotechnologies Inc. is a clinical stage biotech firm developing therapies for ophthalmic diseases. The company plans to offer 5.4 million shares in a price range of $13 to $15, raising around $76 million. Shares are scheduled to price on Wednesday and begin trading Thursday on the Nasdaq under the ticker symbol AAVL.

HealthEquity Inc. provides a software platform that helps consumers make health care savings and spending decisions. The company plans to offer 9.1 million shares in an IPO price range of $10 to $12, raising about $100 million. Shares are scheduled to price on Wednesday and begin trading Thursday on the Nasdaq under the ticker symbol HQY.

Macrocure Ltd. is an Israel-based regenerative medicine company. The company plans to offer 5.4 million shares in a price range of $13 to $15, raising about $75 million. Shares are set to price on Wednesday and begin trading Thursday on the Nasdaq under the ticker symbol MCUR.

Marinus Pharmaceuticals Inc. is a clinical stage biopharma company developing neuropsychiatric therapies. The company plans to offer 4 million shares in a price range of $12 to $14, raising $52 million. The stock is set to price on Wednesday and begin trading Thursday on the Nasdaq under the ticker symbol MRNS.

Tobira Therapeutics Inc. is a clinical stage biopharma developing therapies for liver disease and HIV, among others. The company plans to offer 4.6 million shares in a price range of $12 to $14, raising $60 million. Shares are scheduled to price on Thursday and begin trading Friday on the Nasdaq under the ticker symbol TBRA.

Vascular Biogenics Ltd. is an Israel-based clinical stage biopharma company working on treatments for cancer and other diseases. The company plans to sell 5.4 million shares in a price range of $13 to $15, raising about $76 million. The shares are set to price on Wednesday and begin trading Thursday on the Nasdaq under the ticker symbol VBLX.

Auris Medical Holding AG is a Switzerland-based clinical-stage biopharma company focused on treatment of inner ear disorders. The company plans to sell 6.9 million shares in a price range of $10 to $12 in order to raise about $76 million. The shares are set to price on Thursday and begin trading Friday on the Nasdaq under the ticker symbol EARS.

Bio Blast Pharma Ltd. is an Israel-based development stage biopharma company working on rare and ultra-rare genetic diseases. The company plans to sell 3.3 million shares in a price range of $11 to $13, raising $40 million. The shares are scheduled to price on Thursday and begin trading Friday on the Nasdaq under the ticker symbol ORPN.

FCB Financial Holdings Inc. is a bank holding company that owns a single bank with 54 branches in Florida. The company plans to sell 8.8 million shares in a price range of $24 to $27, raising around $223 million. The shares are expected to price on Thursday and begin trading Friday on the NYSE under the ticker symbol FCB.

Loxo Oncology Inc. is developing cancer treatments for genetically defined patient populations. The company plans to sell 4.4 million shares in a price range of $12 to $14, raising $57 million. The shares are set to price on Thursday and begin trading Friday on the Nasdaq under the ticker symbol LOXO.

Sirva Inc. provides mobility services to multinational corporations and government institutions. The company plans to sell 11.6 million shares in an IPO price range of $15 to $17, raising $186 million. The shares are expected to price on Thursday and begin trading Friday on the Nasdaq under the ticker symbol SRVA.

Delayed from last week was Mapi-Pharma Ltd., a development stage pharmaceutical company that is engaged in developing high barrier to entry and high value-added generic drugs. The Israel-based firm plans to offer 2.3 million shares in an IPO price of $8 to raise $18 million. The shares are expected to price and begin trading this week on the Nasdaq under the ticker symbol MAPI. The per share price was cut from an original range of $13 to $15, and the number of shares was cut back by about 400,000.

Also delayed from last week is Spark Energy Inc., an independent retail natural gas and electricity services provider. The company plans to offer 3 million shares in a price range of $19 to $21, raising a total of $60 million. Shares are set to price on Monday and begin trading Tuesday on the Nasdaq under the ticker symbol SPKE. There were no changes to the terms of this IPO.

One of last week’s scheduled IPOs has been postponed. Atara Biotherapeutics Inc. is a clinical stage biopharma firm that is developing novel therapeutics for muscle wasting conditions and oncology.

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