4 IPOs Pricing This Week
Every month successful companies go public, but it is getting harder to tell which will eventually be winners. Keep in mind that when it comes to dealing with the IPO market, an informed investor will perform much better than one who is not knowledgeable. Be skeptical about the options presented. Do a little homework. Look online for information and read the company prospectus. The more information you have the better off you’ll be. Know who the management is. Read the financials on the company. If you intend to invest after the company lockup period, know what you’re getting into. An informed decision is the best decision. Having said that, nine companies are expected to price this week. Here are a few of them. One may pique your interest.
In the retail sector, Burlington, New Jersey-based Burlington Stores should complete its initial public offering this week. The company hopes to raise $200 million by offering 13.3 million shares in a price range of $14 to $16. At $15 per share, the company would be valued at $1.1 billion. Burlington stores was acquired in 2006 by Bain Capital in an acquisition valued at $2.06 billion. Bain will remain majority shareholder. Once the IPO is complete, the company will list on the New York Stock Exchange under the ticker BURL.
Sandwich restaurant chain Potbelly expects to offer 7.5 million shares between $9 and $11 and garner up to $75 million conservatively. At $10 per share, the midpoint of the expected share range, the chain would be valued at $285 million. The company will be listed on the NASDAQ under the ticker PBPB.
If you’ve always wanted to own a piece of The Empire State Building, you now can. Empire State Realty Trust is going public this evening. The owner of the legendary high-rise building plans to raise $1 billion by offering up 71.5 million shares at a price range of $13.00 to $15.00. The company first filed for an IPO last year, but was derailed by shareholder litigation. The issue was resolved this past spring and now Empire is back on track. Empire will list on the New York Stock Exchange under the symbol ESRT.
In the biopharmaceutical sector, Fate Therapeutics announced today the price of its IPO of 6,666,667 shares. They will be priced at $6 before underwriting discounts. The company will commence trading today on the NASDAQ under the ticker FATE. The offering is expected to close on October 4.
If you’re thinking of investing in any IPO bear in mind that the lock-up period usually lasts from three to 24 months. It is a legally binding period between insiders and underwriters. Neither entity is permitted to sell any shares of stock until this phase is up. Check the time frame of the IPO you’re interested in and adjust your investment strategy accordingly. Be patient and let the market take its course. What you thought you liked in the beginning, may not appear such a good deal when it comes time for you to buy. Remember that a good company will still be a good company after the lockup period.
Disclosure: The author has no position in the stocks mentioned in this article, and does not intend to initiate any position in the next 72 hours.