June kicks off with four new deals on this week's upcoming IPO calendar. They're expected to raise a combined $552 million.
May saw 20 IPOs raise a combined $4.3 billion. According to Renaissance Capital, a manager of IPO-focused ETFs, the group has an average return of 15%. Tallgrass Energy GP LP (NYSE: TEGP), the largest IPO of 2015, made its debut on May 6 and raised $1.2 billion.
Nearly half of last month's deals were biotech IPOs. But this week marks the third consecutive week without one - the longest stretch since January.
Leading this week's new IPOs are PennTex Midstream Partners LP (Nasdaq: PTXP) and Evolent Health Inc. (NYSE: EVH). The two are expected to raise 68% of this week's funds.
Here are all four deals on the upcoming IPO calendar...
This Week's Upcoming IPO Calendar
PennTex Midstream Partners LP (Nasdaq: PTXP) is a midstream master limited partnership (MLP) offering natural gas gathering and processing services throughout northern Louisiana and the Permian Basin. The Houston-based company's sole customer is energy exploration and production firm Memorial Resource Development Corp. (Nasdaq: MRD). PennTex has a 15-year contract with MRD and will offer an initial dividend yield of 5.5%. It plans to raise $225 million by selling 11.25 million shares at a $19 to $21 price range. It has a valuation of $800 million and will begin trading on Thursday, June 4.
Evolent Health Inc. (NYSE: EVH) offers healthcare providers a software platform that facilitates the shift from a fee-for-service model to value-based care. The service helps hospitals offer care to patients at lower costs. The market for Evolent's services is estimated at $10 billion. Its revenue grew 85% to $37 million last quarter after securing multiple one-year contracts with major healthcare companies, including MedStar Health. Forbes ranked Evolent No. 12 on its list of America's Most Promising Companies. The firm is set for a $150 million deal by offering 10 million shares at a price range of $14 to $16. It's valued at $891 million and will hit the market on Friday, June 5.
Here's the rest of this week's upcoming IPO calendar...
EndoChoice Holdings LLC (NYSE: GI) sells gastrointestinal endoscopy systems that utilize multiple cameras. They provide physicians with a 330-degree field of view compared to the standard 170-degree view. The system made up 25% of EndoChoice's $17 million in Q1 sales. The company posted $64 million in sales from April 2014 to April 2015. It hopes to raise $100 million by selling 6.25 million shares at a $15 to $17 price range. EndoChoice commands a market valuation of $396 million and will debut on Friday, June 5.
DAVIDsTEA Inc. (Nasdaq: DTEA) is a chain of stores selling loose-leaf teas, accessories, and beverages with 161 stores across Canada and the United States. The company's sales have soared more than 30% to $115 million this past year. But DTEA faces stiff competition from Starbucks Corp. (Nasdaq: SBUX), which acquired close peer Teavana Holdings Inc. in 2012. DAVIDsTEA plans on raising $77 million by offering 5.1 million shares at a price range of $14 to $16. It has a $388 million valuation and will begin trading on Friday, June 5.
Last Week's New IPO Filings
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Seres Therapeutics Inc. (Nasdaq: MCRB) is a healthcare firm developing therapies that replace bacteria to treat infections. The company filed on Wednesday, May 27, to raise $100 million. That is likely a placeholder value and should change in the coming weeks.
Teladoc Inc. provides on-demand medical care through video and telephone consultations with physicians. It filed a placeholder deal of $100 million on Friday, May 29. Teladoc plans to list under the symbol TDOC. It has not selected an exchange yet.
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- Forbes: #12 Evolent Health