5 IPOs To Launch This Week, Raising Close To $1 Billion

5 IPOs set to launch this week

Brokerdealer.com blog update profiles the 5 IPOs that are suppose to launch this week. With 2 IPOs being tech IPOs, the total for this week’s launches could be close to $1 billion. This update is courtesy of Renaissance Capital with excerpts below, highlighting each of the IPOs.

To get in on the IPO action yourself, find a brokerdealer to work with you and your needs. 

Black Knight Financial Services (BKFS) is the leading provider of automated solutions for mortgage servicing and originations. Spun out of Fidelity National Finance (NYSE: FNF), Black Knight’s platform is used by the top 25 US mortgage servicers and 23 of the 25 largest US mortgage originators. The company’s dominant market position only encourages more customers to use its platform to mitigate mortgage risk.

Shopify (SHOP) is this week’s high-growth IPO. Backed by Bessemer, First Mark and Insight Venture Partners, the company has more than doubled revenue in each of the last 2 years, and sales rose 109% in the 1Q15. The SaaS provider targets 10 million small and medium businesses trying to manage online stores. 

Baozun (BZUN) is the leading provider of brand e-commerce solutions in China with a 20% market share. Backed by Alibaba (BABA), Goldman Sachs and others, it operates in the $4 billion outsourced Chinese e-commerce solutions industry, which is expected to grow at about a 55% CAGR through 2017. It has attracted blue-chip customers like Nike and Microsoft while rapidly growing transaction volumes on its platform. However, investors should be conscious of Baozun’s relatively high customer concentration current lack of positive free cash flow.

Press Ganey (PGND) operates in the nearly-$4 billion market for improving patient satisfaction at health care organizations. LBO’d by Vestar Capital Partners in 2008 for a reported $675 million, the company benefits from incentives under the Affordable Care Act that drive health care to become more consumer-focused. Press Ganey has established itself as the market leader in surveying patients, but also pitches its ability to leverage patient data into an analytics platform that recommends hospital best practices.

Community Healthcare Trust (CHCT) is a newly-formed REIT targeting an initial portfolio of 35 health care-focused properties, including non-urban clinics and surgery centers. Aside from its relatively high initial yield of 7.5%, investors may be betting that CEO Timothy Wallace will leverage his public company experience as former co-founder and EVP of Healthcare Realty Trust (NYSE: HR).

To read Renaissance Capital’s complete coverage on this week’s IPO, click here

Virgin America Flies High With IPO; Investors Touched For The Very First Time

Shares of the Discount Airline Close at $30, Up 30% from the IPO Price

BrokerDealer.com blog update courtesy of extract from WSJ. A complete directory of brokerdealers who participated in underwriting the airline industry’s first initial public offering in quite a while can be found via the brokerdealer.com database.

Virgin America Inc. took off Friday, as shares of the discount airline rose more than 30% in their market debut.

Virgin America Fly Girls PremiereThe stock, which began trading on the Nasdaq Stock Market under the symbol “VA,” closed at $30, giving the company a market value of about $1.3 billion. Earlier Friday, shares opened at $27 and hit a high of $31.19. Virgin America’s initial public offering of about 13.3 million shares was priced at $23 each, at the higher end of the carrier’s initial range of $21 to $24 a share and valuing the Burlingame, Calif., company at $994 million. The first-day pop exceeds the average 13% gain IPOs have notched so far this year according to IPO ETF manager Renaissance Capital.

Virgin America currently has a market capitalization of $1.3 billion.

Following the IPO, Virgin America expects to have about 43.2 million shares in total, leaving Cyrus Capital Partners LP and Virgin Group Ltd. as the company’s largest shareholders.

PAR Investment Partners LP has agreed separately to purchase 2.3 million shares for about 96% of the IPO price, or about $50 million, from the controlling shareholders in a private placement. The IPO is expected to raise about $220 million in net proceeds, which Virgin America said it plans to use for working capital, sales and marketing, and capital expenditures. Selling shareholders won’t receive any proceeds.

For the full story from WSJ, please click here

Fidelity Investments Partners With BrokerDealer Credit Suisse for IPO Deal Flow

Fidelity Investments and investment banker/brokerdealer Credit Suisse have formed a partnership that gives Fidelity’s retail brokerage clients access to participate in initial public offerings and follow-on equity offering underwritten by Credit Suisse. The partnership opens up IPO investing for customers of Fidelity’s registered investment advisor (RIA) network, its family office clients and its retail brokerage customers who qualify.

For Credit Suisse, the arrangement opens up its potential investor base to a wide arena of new customers. “It gives us the ability to distribute shares into the mass market that we didn’t have before,” David Hermer, Credit Suisse’s head of equity capital markets for the Americas, told New York Times DealBook.

About 232 companies have gone public so far this year, nearly 79 percent more compared with those in the period a year earlier, according to data from Renaissance Capital. By Mr. Hermer’s reckoning, the I.P.O. surge is still only in its early stages.

Credit Suisse completed 63 book-run IPOs in the first half of 2014, its most active half-year period on record. For that period, Credit Suisse ranks number two for IPOs in the U.S. and in the EMEA area–Europe, the Middle East and Africa. Looking ahead, Credit Suisse is working on several high-profile deals, including the much-anticipated IPO for Chinese internet company Alibaba.

And, the thinking goes, the more companies that Credit Suisse helps take public, the more that Fidelity customers benefit. The IPO participation is open to Fidelity investors with a minimum of $500,000 in retail assets.