Watchlist: Five IPOs Scheduled For April 10-14, 2014

Political and economic woes haven’t slowed Wall Street’s appetite for new offerings. Five companies, three in the health care industry and two in the real estate sector, are scheduled to go public during the second week of April.

April 10, 2014 Scheduled IPOs

Adamas Pharmaceuticals Inc. is looking to raise $62 million by offering 3 million shares priced between $16.00 and $18.00 per share. The company will trade on the Nasdaq under the symbol ADMS. Adamas specializes in developing treatments for central nervous system afflictions such as Parkinson’s Disease, moderate to severe dementia stemming from Alzheimer's and behavioral disorders resulting from traumatic brain injuries.

Adamas raised over $87 million from private equity offerings beginning in 2004 and received $105 million from their Forest Laboratories partnership. The company has 22 employees and is headquartered in Emeryville, Calif

.

Ally Financial Inc. is selling 95 million shares at $25 to $28 a share to raise $3.059 billion. The company will trade on the NYSE under the symbol ALLY. The IPO is underwritten by Citi and Goldman Sachs. Ally Financial provides wholesale and retail automobile loans for dealership customers. The company plans to increase its dealership customer base and boost the presence of its subsidiary, Ally Bank, in the financial community.

Ally Financial posted a net profit of $296 million in 2012 and a net loss of $509 million in 2013. For 2013, the company posted an ROA of .27% and an ROE of 2.22%. Ally Financial employs approximately 7,100 people and has its principal headquarters in Detroit, Mich.

Farmland Partners Inc. is offering 4.7 million shares at $14 to $16 a share to raise $86 million. The company will trade on the NYSE under the symbol FPI. Baird is the lead underwriter followed by BMO Capital Markets. Farmland Partners is real estate company that is buying up prime farmland throughout North America. The company plans to earn rental income by leasing out acreage to farmers. The remaining farmland will be held aside to appreciate in value as farmland becomes increasingly scarce. Virtually all the farmland currently held in the portfolio will be leased when the IPO is completed.

The company’s unaudited financial statements report net income of $390,191 for 2012 and $569,159 for 2013. Total assets for 2013 are $39,813,149, total liabilities are $43,680,347 and the equity deficit is $3,867,198. The total capitalization as of Sept. 2013 is $39,312,706.

Farmland Partners has two employees and is headquartered in Westminster, Colo.

April 11, 2014 Scheduled IPOs

Aldeyra Therapeutics Inc. will trade on the Nasdaq Smallcap Market under the symbol ALDX. The company is offering 2.275 million shares between $10.00 to $12.00 a share to raise $31,395,000. Aegis Capital Corp is the lead underwriter of the IPO. Aldeyra intends to develop niche drugs targeting autoimmune conditions affecting the eyes and skin. The company has one drug, NS2, in Phase I and II clinical trials.

The company reported a net loss of $39,125,900 in 2012 and net profit of $1,109,910 in 2013. Total assets as of Dec. 31, 2013 are $3,743,233 and a stockholders’ equity deficit of $40,221,326. Aldeyra has two employees and is headquartered in Burlington, Mass.

City Office Reit Inc. is looking to raise $122.7 million by offering 6.7 million shares between $14 to $16 a share. The company will trade on the NYSE under the symbol CIO. Janney Montgomery Scott and Wunderlich Securities are the primary underwriting managers. City Office Reit was formed to purchase high-quality office property located in 12 target markets throughout the Southern and Western U.S. When the IPO is completed, the company plans to own one business office complex consisting of 16 buildings each in Boise, Idaho; Denver, Colo.; Portland, Ore.; Tampa, Fla.; Orlando, Fla.; and Allentown, Penn. The company plans to primarily rent office space to federal and state government agencies.

Unaudited financial statements report the company’s net income as $20,490,578 in 2013 and $11,516,458 in 2012. The total assets are $143,639,341, total liabilities are $115,931,226 and total stockholders’ equity is $27,708,115. The company’s total capitalization as of Dec. 31, 2013 is $184,416,887. City Office Reit was incorporated in Maryland in 2007 and is located in Vancouver, British Columbia, Canada.

By Karen Rogers

Source:http://www.gurufocus.com/news/253527/watchlist-five-ipos-scheduled-for-april-1014-2014

Cisco rival files for $200 million IPO

Arista Networks' switching systems have proved especially popular with Wall Street trading houses.

Arista Networks, a startup that has become a prominent rival to Cisco Systems (CSCO +0.38%), has filed for an initial public offering for up to $200 million in stock.

The company's co-founders include Andy Bechtolsheim, a prolific entrepreneur and hardware designer who was the first outside investor inGoogle (GOOG -0.50%). Its chief executive is Jayshree Ullal, a former Cisco executive who has led the company since 2008.

Arista makes switching systems, targeting one of Cisco's biggest markets. Its products have been particularly popular among Wall Street trading houses and cloud companies, which deliver online services over the Web and are high-volume buyers of computing hardware.

The company disclosed Monday that its profit nearly doubled in 2013 to $42.5 million, while its revenue jumped 87 percent to $361.2 million from the previous year. 

Arista said one buyer, identified only as Customer A, accounted for 22 percent of its revenue in 2013.

Arista, based in Santa Clara, Calif., is the latest in a string of companies hoping to capitalize on investor optimism about cloud technology. Last week, online storage company Box Inc. revealed plans to raise as much as $250 million in an IPO, as the nine-year-old firm attempts to ward off intensifying competition in the online storage market.

Bechtolsheim in 1982 co-founded Sun Microsystems Inc., one of Silicon Valley's biggest computer makers until its purchase by Oracle (ORCL +3.39%) in 2010. After leaving Sun, he went on to co-found a networking company that was purchased by Cisco; he subsequently served for several years as a Cisco executive.

The German-born engineer later co-founded another startup that was purchased by Sun, returning to that company to help design its servers.

Arista, which was founded in 2004, said it has no specific plans regarding the proceeds from the offering, it noted that the primary reasons for the offering are to increase Arista's capitalization and financial flexibility, to obtain additional capital, and to increase the company's visibility in the marketplace.

Morgan Stanley (MS +0.84%) and Citigroup (C +0.74%) are leading the offering, according to the filing.

Arista said it intends to have its stock trade on the New York Stock Exchange under the symbol "ANET."

By Don Clark and Anna Prior, The Wall Street Journal

4 New Issues IPO Investors Need to Know About for This Week

As far as the market for fresh stock issues is concerned, March is definitely not going out like a lamb. This week the IPO beast will roar loudly, with nine new stocks coming to market. Out of that group, one -- IMS Health Holdings -- will tip the scales, pricing its issue to take in a potential $1.37 billion.

Aside from that big animal, this week will see the market debut of online food delivery service provider GrubHub, which we've written about previously in a longer analysis.

Before we discuss these issues (as well as IT cloud services niche firms Five9 and The Rubicon Project), we have to wag a cautionary finger: IPO investing carries above-average risk, since initial stock prices can be far from the value the market eventually puts on the company's shares. This situation provides immense upside potential, but it also opens the possibility of losing a big chunk of an investment.

With that warning out of the way, let's dig in.

The Rubicon Project
At the dawn of the millennium, the bulk of tech industry IPOs were from companies somehow connected to the sale of goods or services on the Internet. Fast-forward a decade and a half later to the latest trend -- cloud computing service providers. The Rubicon Project provides a virtual marketplace for digital advertising. It promises efficiency in doing so; in its words it has "transformed the cumbersome, complex process of buying and selling digital advertising into a seamless automated process that optimizes results for both buyers and sellers." Revenue is advancing at encouraging rates, although the firm has booked net losses in each of its past three fiscal years.

Lead-underwriting this IPO are Morgan Stanley (NYSE: MS  ) , Goldman Sachs (NYSE:GS  ) and Royal Bank of Canada's (NYSE: RY  ) RBC Capital Markets. Nearly 6.8 million shares of The Rubicon Project are slated to go on sale at $15 to $17 apiece Wednesday, trading on the New York Stock Exchange and bearing the ticker symbol RUBI.

Five9
For investors who can't get enough cloud this week, there's Five9. As with The Rubicon Project, the fluffy part of cyberspace is from whence this firm delivers its wares. Five9's niche is contact centers -- i.e., customers' first point of contact with a company and its services. Five9 provides its offerings through its Virtual Contact Center, a software suite packaging a host of functions needed to implement and run such operations. The company seems to be doing a good job of capturing its segment, with sharply rising revenues, but potential investors should keep an eye on growing bottom-line losses.

Ten million shares of Five9 are scheduled to hit the market on Friday at a price of $9 to $11 apiece, trading on the Nasdaq under the ticker symbol FIVN. The lead underwriters of the issue are JPMorgan Chase  (NYSE: JPM  )  unit J.P. Morgan, Barclays, and Bank of America Merrill Lynch.

IMS Health Holdings
By far the biggest issue of the week belongs to this company, another niche tech concern. IMS Health Holdings is a purveyor of information to the broader health care industry, and it's got reams of data -- according to the company, it's in possession of more than 500 million anonymous patient records comprising more than 10 petabytes of data. Its client base is pharmaceutical companies and other health-care firms that require such data sets for their research. Since assuming its present corporate form starting with the 2010 fiscal year, IMS Health Holdings has shown good profitability and an incrementally growing top line. Health care is a strong industry and will likely continue to be, so IMS Health Holdings seems like a good play on that growth.

J.P. Morgan, Goldman Sachs, and Morgan Stanley are the lead underwriters bringing IMS Health Holdings public. A total of 65 million shares should go on sale this Friday on the NYSE at $18 to $21 per share under the ticker symbol IMS.

GrubHub
If any of this week's issues is familiar to the general public it's probably this one, a purveyor of online food ordering services with a strong presence on mobile devices thanks to its popular apps. Middle-manning food has been lucrative for GrubHub, although its rising costs have dampened profitability over the past three years. Another area of concern is the size of the issue, which gives GrubHub's stock very high valuations. Nevertheless, the restaurant business is poised to grow and the firm seems to be in a good position to take advantage of this.

GrubHub is scheduled to make its market debut on the NYSE Friday under the auspices of lead underwriters Citigroup (NYSE: C  ) and Morgan Stanley. The company is selling 4 million shares, while other stakeholders are unloading a total of just over 3 million. The price range is currently $20 to $22 per share, and the stock's ticker symbol should be the very appropriate GRUB By Eric Volkman | More Articles . 

Source:http://www.fool.com/investing/general/2014/03/30/4-new-issues-ipo-investors-need-to-know-about-for.aspx

Eric Volkman has no position in any stocks mentioned. The Motley Fool recommends Bank of America and Goldman Sachs, and owns shares of Bank of America, Citigroup, and JPMorgan Chase. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

TWTR and 7 Other IPO Lockups to Worry About

Twitter (TWTR[1]) has been in near-free fall since early February, with Twitter stock diving by nearly 30% in just a couple of months.

True, part of the hit can be chalked up to the impact of a bear move in the broader social sector — see Facebook (FB[2]), Angie’s List (ANGI[3]) and Pandora (P[4]). But there’s another factor that TWTR stock investors should be worried about: the IPO lock-up expiration.
Lock-ups and their expirations — in which insiders are allowed to sell shares — are normal occurrences for all IPOs. Insiders typically are restricted from selling for up to six months following the offering.
But the Twitter stock lock-up had an unusual two-part structure:

• Feb. 15: TWTR allowed 9.9 million shares to be sold, or an addition 14% of the original number of shares issued in the IPO (70 million).
• May 6: TWTR will allow a whopping 465 million shares to be sold. And considering what happened after the first one — Twitter stock is down 18% since Feb. 15 — this is something investors should be worried about.

Investors must note that lockups are particularly concerning for hot tech companies, as a big portion of employee compensation tends to come in the form of stock. Considering TWTR is trading at nose-bleed valuations of 39 time sales, and that even after this year’s big losses, shares are up 80% from their IPO price, it’ll be awfully tempting for employees to dump shares. (After all, it’s not cheap to live in San Francisco!)
Lockups are no kiss of death, and everyone goes through them. Facebook, LinkedIn (LNKD[5]) and Groupon (GRPN[6]) all faced selloffs of their own, and all recovered.
Still, given the short-term pain, it’s wise for both those looking to sell current positions and those looking to buy in to know what’s coming up. So, here’s a look at some other stocks to put on your lockup radar screen:

• April 14: Veeva Systems (VEEV[7]): Operates a cloud-based system for the pharma and biotech industries.
• April 16: Voxeljet (VJET[8]): Develops high-end 3d printers for companies like Daimler (DDAIF[9]), BMW (BAMXY[10]), Ford (F[11]) and 3M(MMM[12]).
• April 28: Criteo (CRTO[13]): Runs an algorithmic ad network that spans the desktop and mobile platforms.
• May 5: Wix (WIX[14]): Provides web hosting for small businesses.
• May 14: Zulily (ZU[15]): Operates an e-commerce site for children’s apparel and other products for moms.
• May 15: 500.com (WBAI[16]): Manages online sports lotteries in China.

Again, don’t assume all these stocks will fall. In fact, the lockup expiration might have little to no impact for IPOs that have declined since their debuts (VEEV, for example).
Instead, you’ll want to focus on stocks that have had big-time gains. WBAI, ZU and even VJET — which is down since its first day of trading — all still trade for at least double their IPO prices, so insiders will definitely be thinking hard about collecting. That makes these stocks vulnerable during the next few months.

By Tom Taulli
Source: http://investorplace.com/ipo-playbook/twtr-ipo-lockups/#.UzY88qjxoTc

CBS Outdoor Americas (CBSO) IPO Opens Higher

The IPO for CBS Outdoor Americas Inc. (NYSE: CBSO), the outdoor advertising subsidiary of CBS Corporation (NYSE: CBS), opened for trading at $30.10 after pricing 20 million shares of itscommon stock at a price to the public of $28 per share, the high end of the expected $26-$28 range.

In addition, CBS Outdoor has granted underwriters a 30-day option to purchase an additional three million shares at theinitial public offering price, less underwriting discounts and commissions.

At closing, CBS Corporation will own approximately 83% of CBS Outdoor (or approximately 81% of the outstanding stock if underwriters exercise their option to purchase additional shares in full). CBS plans to divest its shares through a tax-free split-off later this year. After CBS is fully divested, CBS Outdoor plans to convert into a real estate investment trust ("REIT").

Goldman, Sachs & Co., BofA Merrill Lynch, J.P. Morgan, and Morgan Stanley are acting as joint book-running managers, and Citigroup, Deutsche Bank Securities, and Wells Fargo Securities are acting as book runners.

CBS Outdoor is one of the largest out-of-home media companies in the Americas and has a major presence throughout the United States, Canada, Mexico and South America. With both traditional outdoor (billboard and transit) advertising properties and a network of digital displays and mobile offerings, CBS Outdoor gives advertisers both breadth and depth of coverage across vast geographies, as well as immersive ways to connect with advertiser

Source: http://www.streetinsider.com/Hot+IPOs/CBS+Outdoor+Americas+%28CBSO%29+IPO+Opens+Higher/9326616.html