IPOs this week : July 25 - 29, 2011 (wk 30)

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.

Energy IPOs: C&J Energy, American Midstream

This week's busy IPO calendar has two energy names -- American Midstream Partners (AMID), which priced at the top of its range late Tuesday and is having a mostly flat debut; and C&J Services (CJES), which specializes in fracking, a controversial drilling method.

C&J is looking to raise roughly $305 million through the sale of 11.5 million shares at an estimated range of $25-$28 each. The driller concentrates its drilling in Texas, Louisiana and Oklahoma, where there are few restrictions on this type of drilling as opposed to New York, which has outlawed the method.

Francis Gaskins, president of IPO Desktop, likes C&J but has a complaint that the company's been inconsistent at times about how much stock it's looking to sell, saying in its original S-1 filing in late March that it was selling 29 million shares at $14.40 each.

While the deal's terms appear to have changed, Gaskins says: "It makes you wonder what the insiders know that makes them want to sell."

Aside from that confusion, C&J looks good. The revenues have been increasing, gross margin is up and the company is making a profit. It does have some major competition in Halliburton (HAL), Schlumberger (SLB) and Baker Hughes (BHI), but it seems to have carved out a decent market share.

C&J operates four different fracturing fleets, as well as a fleet of 14 coiled tubing units and numerous pumps. Its focus on technically demanding drilling has set the company aside from its competitors and given it a niche.

Of American Midstream, which raised $75 million in its market debut, Gaskins says simply: "There are better limited partnership deals to choose from."

American Midstream was formed to acquire a portfolio of natural gas assets. The general partner is looking to use the money raised in the IPO to repay debt and pay itself a handsome fee. Insiders will receive $30 million of the proceeds. The business isn't doing all that well with the last profitable year dating back to 2008, which likely explains the yawns the stock is drawing on Wednesday.