It's another big week for IPOs. More than a dozen are slated to begin trading in the next three days.
What's in play: Energy and biopharma.
Biopharma has sprung back to life, after fading away for about six weeks. Several of them are extremely small, however.
Five IPOs priced overnight.
There were two energy deals. On the NYSE, coal producer Foresight Energy LP (FELP) priced 17.5 million shares at $20, in the middle of the $19 to $21 price talk. This is another yield play: $1.35 a share dividend, roughly 6.7 percent yield. Juicy! It claims to be the lowest-cost and highest-margin thermal coal producer in the U.S. The problem: The coal sector is very much out of favor.
But the yield should attract retail. Look at Abengoa Yield (ABY), which priced last week at $29, trading now at $36. It owns renewable and conventional power and electric transmission assets. It has assets--electricity from solar energy, wind and other conventional electricity--that it has acquired from its parent. Initial dividend yield is 3.6 percent, but the expectation is that yields will rise.
On the NASDAQ, Diamondback spinoff Viper Energy Partners LP (VNOM) priced five million shares at $26, above the $19 to $21 range. It owns oil and natural gas properties, largely in the Permian Basin in West Texas. No plans for a dividend yet.
There were a couple biopharma deals on the NASDAQ. Late-stage biotech ZS Pharma (ZSPH) priced 5.9 million shares - more than expected - at $18, above the $15 to $17 price talk.
Molecular diagnostic company Signal Genetics (SGNL) priced 850,000 shares at $10.
Also on the NYSE, single-family homebuilder Century Communities (CCS) priced 4.4 million shares at $23, at the low end of the $23 to $26 range.
Five more IPOs--four of them biotechs--are pricing tonight:
- Ardelyx (ARDX), which specializes in gastrointestinal diseases, is seeking to price 3.6 million at $13-$15.
- Zafgen (ZFGN), which focuses on obesity, is offering five million shares at $14-$16.
- Syndax Pharmaceuticals (SNDX), on oncology company, is trying to price 4.3 million shares at $13-$15.
- Not everything is working: Parnell Phara (PARN) is reportedly pricing five million shares at $10, well below the price talk of 3.6 million shares at $17-$19.
But the hottest IPO of the week--also set to price tonight--is Markit (MRKT), seeking to price 45.7 million shares at $23-$25, a financial information firm. It owns widely-traded credit default swap indices.
So much fun having Tesla (TSLA) chief Elon Muskwith us on Closing Bell last night! Musk talked about artificial intelligence, manned flights to Mars (possible in 10 to 12 years!), why he open-sourced the Tesla patents and solar energy.
Musk announced plans to build a new solar plant in New York state. Yesterday the solar company Musk controls, SolarCity (SCTY), announced it's buying Silevo, a solar panel technology business, and would diversify it into making panels. Musk made an important point on our air yesterday: The efficiency of solar panels is expanding dramatically and that naysayers who insist solar will not be an important part of our energy picture are failing to understand that. Solar is going to be able to leverage the exponential growth in solar energy capacity.