This week’s calendar has three new names on it, but investors can buy shares in two of these companies before the IPOs get priced. How can this be? The answer can be found by reading the not-so-fine print on the front page of each offering’s preliminary prospectus – or “red herring” as it’s known in Wall Street jargon.
The “IPOs” are Paragon Commercial (PBNC) and Viveve Medical (VIVMF).
Money and Health
Paragon Commercial, based in Raleigh, North Carolina, operates as a bank holding company for Paragon Commercial Bank, which provides commercial and private banking services. The bank’s commercial focus is on companies and professional service firms, including attorneys, healthcare providers and accountants. Its private banking services cater to the needs of executives, business owners, entrepreneurs and other high-net-worth individuals who desire an extraordinary client experience that is rarely available at other financial institutions, according to the prospectus.
The first paragraph on the front page of its “red herring” reads: “This is the initial public offering of Paragon Commercial Corporation, the parent company and registered bank holding company of Paragon Commercial Bank in Raleigh, North Carolina. We are offering 736,000 shares of our common stock.”
(Note: Bolded language is for emphasis.)
The second paragraph on the front page of its “red herring” reads: “Prior to this offering, our common stock was quoted on the OTCQX marketplace under the symbol “PBNC.” We currently estimate that the initial public offering price per share will be between $33.00 and $35.00. We have applied to list our common stock on the NASDAQ Capital Market under the symbol “PBNC.””
Note: Its stock has been trading on the OTCQX since April 15, 2015, and it closed Friday, June 10, 2016, at $32.50, UP from $30.50 on June 9.
Conclusion: This is a public offering. It’s not an IPO.
Viveve Medical, based in Sunnyvale, California, provides medical devices for the non-invasive treatment of vaginal laxity. The company distributes its products through sales consultants and distribution partners in North America, Latin America, Europe, the Asia Pacific region and the Middle East.
The first paragraph on the front page of its “red herring” reads: “We are offering 1,562,500 shares of our common stock, par value $0.0001 per share, in a firm commitment underwritten offering at an assumed initial public offering price of $8.00 per share, which share number reflects the one for eight reverse stock split that we effected on April 15, 2016 (the “reverse stock split”) described in this prospectus.”
The second paragraph on the front page of its “red herring” reads: “Our common stock is currently quoted on the OTCQB under the symbol “VIVMF.””
Note: Its stock has been trading on the OTCQB since May 3, 2010, and it closed Friday, June 10, 2016, at $5.60.
Conclusion: This is a public offering. It’s not an IPO.
Meetings, WiFi and More
This brings us to the rest of this week’s calendar. The only IPO being offered is PSAV (PSAV – proposed).
PSAV, based in Schiller Park, Illinois, is a provider of audiovisual and event technology services. The company supplies solutions to support events ranging from small meetings to global multimedia conference events.
Formed in 2007, the company has about 8,200 employees. For the 12 months ending March 31, 2016, PSAV reported a net loss of $4 million on revenue of $1.5 billion.
Bankers plan to price 16.1 million shares at $14 to $17 each on Thursday evening, June 16, to trade Friday morning, June 17. The IPO is expected to raise about $252 million.
Looking into the week of June 20, the IPO calendar has two deals aiming to raise about $137 million. The offering price of each is $14 to $16 per share. This tells us they are bio-healthcare offerings, but more about these price levels next week. Nevertheless, things can happen quickly on Monday mornings in the IPO Valley.
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 opinion.