The IPO Buzz: Summer’s Healthy Swan Song

This week’s calendar has five deals scheduled to make their debuts. They are expecting to raise almost $1.2 billion. Two are new faces pressed against the IPO window and both are reportedly “IPOs of Interest.” Rounding out the calendar, two are carryovers from the past and the other is a U.S.-based company whose shares have been trading on The Toronto Stock Exchange since July 2004. Some services are carrying this offering as an “IPO.” It is not. It is a public offering, a/k/a secondary offering.  

 

Envision Healthcare Holdings (EVHC – proposed) is a Greenwood Village, Colorado-based provider of physician-led outsourced medical services, including ambulance services and emergency care. The company offers a broad range of clinically based and coordinated care solutions across the patient continuum through more than 20,000 affiliated clinicians. For the 12-month period ending March 31, 2013, Envision reported net income of $36.1 million on revenues of $6.3 billion. Founded in 2011, the company has about 16,547 employees.

 

Underwriters plan to offer 35 million shares of Envision Healthcare at $20 to $23 each to raise about $752.5 million. The IPO is expected to be priced on Tuesday evening and trade on Wednesday morning on the New York Stock Exchange. The joint-lead managers are: Goldman Sachs, Barclays, BofA Merrill Lynch and Citigroup. The co-managers are: UBS Investment Bank, Jefferies, Avondale Partners, Oppenheimer, Cantor Fitzgerald, Natixis, William Blair and Drexel Hamilton.

 

(Note: The Dow Jones Health Care Index (DJUSHC) has outperformed the U.S. securities markets. On Aug. 9, 2013, the Index was up 28.4 percent for the year versus an 18.6 percent gain for the S&P 500 Index (.INX) and over the last 52 weeks, the DHUSHC Index was up 32.7 percent versus a 20.3 percent gain for the S&P 500 Index.)

 

 

Third Point Reinsurance Ltd. (TPRE – proposed) is a Pembroke, Bermuda-based property and casualty reinsurance company. This is the reinsurance arm of Third Point LLC, a hedge fund founded by Daniel Loeb. In January 2012, Third Point Reinsurance received an A- (Excellent) financial strength rating from A.M. Best. For the 12-month period ending March 31, 2013, Third Point reported net income of $200.9 million on revenues of $396.6 million. Founded in 2011, the company has about 17 employees.

 

Underwriters plan to offer 22.2 million shares of Third Point Reinsurance at $12.50 to $14.50 each to raise about $300 million. The company plans to sell 21.5 million shares and selling shareholders plan to sell 700,000 shares of the offering. The IPO is expected to be priced on Wednesday evening and trade on Thursday morning on the New York Stock Exchange. The joint-lead managers are: J.P. Morgan, Credit Suisse, Morgan Stanley, BofA Merrill Lynch and Citigroup. The co-managers are: Aon Benfield Securities, Dowling & Partners, Keefe, Bruyette & Woods (A Stifel Company), Macquarie Capital and Sandler O’Neill + Partners.

 

(Note: The Dow Jones U.S. Reinsurance Index (DJUSIU) has outperformed the U.S. securities markets. On Aug. 9, 2013, the Index was up 28.4 percent for the year versus an 18.6 percent gain for the S&P 500 Index (.INX) and, over the last 52-weeks, the DJUSIU Index was up 35.3 percent versus a 20.3 percent gain for the S&P 500 Index.)

 

 

Sophiris Bio (SPHS – proposed) is a La Jolla, California-based clinical-stage biopharmaceutical company. This is what separates it from the IPO calendar. From the cover page of its prospectus: “Our common shares are currently listed on the Toronto Stock Exchange under the symbol “SHS.” On August 6, 2013, the last reported sale price of our common shares on the Toronto Stock Exchange was CND$0.255 per share, or US$0.25 per share, or US$13.00 per share after giving effect to a share consolidation of our common shares to be effected prior to the closing of this offering.”

 

Underwriters plan to offer 5 million shares of Sophiris. Note: Certain existing shareholders have indicated an interest in purchasing up to about US$19.0 million of common shares in this offering at the public offering price. The IPO is expected to be priced on Tuesday evening and trade on Wednesday morning on the NASDAQ Global Market. The joint-lead managers are: Citigroup and Leerink Swann. The co-managers are: Stifel and Lazard Capital Markets.

 

 

This brings us to next week. At deadline, there were no IPOs on the calendar for the week of Aug. 19. As we have seen many times in today’s IPO market, though, the calendar can fill up quickly.

 

Stay tuned.