June’s first week kicks off with four IPOs on the calendar. The word around The Street is all are “in play.” To cut to the chase, here’s the pecking order, according to the IPO pros.
Tea Time
DAVIDsTEA (DTEA – proposed) is a Québec-based branded beverage company offering a wide selection of proprietary loose-leaf teas, pre-packaged teas, tea sachets and tea-related gifts and accessories through 161 DAVIDsTEA stores in Canada and major U.S. cities, as of May 2, 2015, and online, the prospectus says. Founded in 2008, DAVIDsTea reported net income of $6.5 million on revenues of $141.9 million for the year ended Jan. 31, 2015, versus a net loss (yes, loss) of $6.2 million on revenues of $108.2 million for the year-ago period.
Bankers are expected to price 5.1 million shares (2.99 million shares by the company and 2.11 million shares by insiders) at $14 to $16 each on Thursday evening to trade on the NASDAQ Global Market on Friday morning.
(For more information, please click here: DAVIDsTEA)
Medical Care and Money
Evolent Health (EVH – proposed) is an Arlington, Virginia-based provider of healthcare delivery and payment services. The company’s platform enables hospitals and doctors’ groups to change from fee-for-service (FFS) reimbursement to value-based payment models “that reward high-quality and cost-effective care,” according to the prospectus. Evolent’s investor partners include the UPMC (University of Pittsburgh Medical Center) Health Plan, which is the nation’s largest provider-owned health plan after Kaiser Permanente, according to the company’s website. Evolent believes that by partnering with providers, it enables them to expand their market opportunity, diversify revenue streams, increase market share and improve the quality of care they provide. Founded in 2012, Evolent Health reported a net loss of $19.3 million on revenues of $37 million for the three months ended March 31, 2015, versus a net loss of $11.6 million on revenues of $20.1 million for the year-ago period.
Bankers are expected to price 10 million shares at $14 to $16 each on Thursday evening to trade on the New York Stock Exchange on Friday morning.
(For more information, please click here: Evolent Health)
Wide-Angle Colonoscopies
EndoChoice Holdings (ECPM Holdings LLC) (GI – proposed) is an Alpharetta, Georgia-based medical device company focused exclusively on designing and commercializing a platform of innovative products and services for gastrointestinal caregivers. EndoChoice serves over 2,500 GI departments that perform endoscopic procedures, or about one-third of the U.S. market, the prospectus says. In December 2013, EndoChoice began limited commercialization of its Fuse® full spectrum endoscopy system. The Fuse system “enables GI specialists to see more than twice the anatomy at any one time compared to standard, forward-viewing colonoscopes, and it has been clinically demonstrated to detect 69 percent more pre-cancerous polyps than standard colonoscopies,” according to the prospectus. Founded in 2007, EndoChoice reported a net loss of $15.3 million on net revenues of $16.8 million for the three months ended March 31, 2015, versus a net loss of $10.9 million on net revenues of $13.9 million for the same period a year ago.
Bankers plan to price 6.25 million shares at $15 to $17 each on Thursday evening to trade on the New York Stock Exchange on Friday morning.
(For more information, please click here: EndoChoice Holdings)
A Natural Gas Yield Play
PennTex Midstream Partners, LP (PTXP – proposed), based in Houston, is a recently formed limited partnership put together to hold and operate midstream natural gas-related assets, including natural gas processing plants and pipelines, in northern Louisiana. The company is backed by NGP, a family of private equity funds that makes direct investments in oil and gas properties. The partnership’s initial assets will be supported by 15-year fee-based commercial agreements containing minimum volume commitments and firm capacity reservations with Memorial Resource (NASDAQ: MRD). PennTex Midstream Partners, LP plans to make a minimum quarterly distribution of $0.2750 per unit – or $1.10 per unit on an annualized basis – to yield 5.5 percent based upon the mid-point of the IPO pricing range.
Bankers plan to price 11.25 million common units at $19 to $21 each on Wednesday evening to trade on the NASDAQ Global Market on Thursday morning.
(For more information, please click here: PennTex Midstream Partners, LP)
Looking into the week of June 8, the IPO calendar has two deals. But there’s no need to worry. The calendar has been known to fill up quickly on Monday mornings.
Stay tuned.
Disclosure: Neither the author nor anyone else on the IPOScoop.com staff has a position in any stocks mentioned, nor do we trade or invest in IPOs. The author and IPOScoop.com staff do not issue advice, recommendations or opinions.