initial public offerings (IPOs) trading on American exchanges

Wednesday, July 27, 2011

IPOs this week (25 July 2011) : 11 companies scheduled

There are 11 IPOs scheduled for the week, making it the busiest since November 2007, according to IPO investment adviser Renaissance Capital. 

The heavy action is a continuation from last week, when Zillow Inc. (Z) and Skullcandy Inc. (SKUL) led a handful of companies into the public realm.

The influx in IPOs may be attributed to recent concern about the U.S. deficit, and the potential that capital may dry up if debate over the debt ceiling is not resolved.

One is ADS Tactical Inc., a U.S. defense supply-chain middleman specializing in tactical and operational equipment. The stock was expected to begin trading Friday under the proposed ticker “ADSI.”

The Virginia-based company hopes to raise $204 million by offering 12 million shares, valued at a price range of $16 to $18 apiece. ADS Tactical plans to list on the New York Stock Exchange with J.P. Morgan, Morgan Stanley, and Wells Fargo Securities as the main underwriters. Sweet said that the talks in Washington over the debt ceiling “may be having an impact,” though earlier signs shows strong demand for the shares.

C&J Energy is also generating some buzz, Sweet continued. The Houston-based provider of fracturing services for the oil industry is also looking to join the NYSE under the symbol “CJES.”

The company plans to raise $305 million, offering 11.5 million shares at a price range of $25 to $28 a share. J.P. Morgan is again the underwriter, along with Goldman Sachs and Citigroup.

Teavana Holdings is a specialty retailer of loose tea with 163 stores across the United States and 17 in Mexico. The Atlanta-based company will look to use the symbol “TEA” on the New York Stock Exchange. It is expected to offer 7 million shares priced between $13 and $15, in an effort to raise $100 million. Goldman Sachs and Bank of America Merrill Lynch are the lead underwriters.

Four more companies will be looking to trade on the Big Board.

Energy company American Midstream Partners (AMID), agricultural firm Union Agriculture Group (UAGR), aerospace-part distributor Wesco Aircraft Holdings (WAIR) and health-care organization WhiteGlove Health (WGH) would bring the total NYSE offerings to eight.

The Nasdaq market is set to add three companies.

Food-product distributor Chefs Warehouse, communication management-software provider Tangoe Inc., and pharmaceutical firm Horizon Pharma Inc. are all expected to make their debuts this week. Horizon’s offering comes as the company plans to commercially launch its two main products, treating ulcers and arthritis pain.

All the companies are surely hoping to see some of the success of last week’s IPOs. Zillow closed at a 71% premium, while Francesca’s Holdings FRAN -2.19% , a women’s clothing boutique, saw a 63% pop.

Originally there were 12 IPOs expected for the week; however, Orchid Island Capital, a finance firm, chose to postpone its deal.

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