This week's four new IPOs should raise a combined $955 million, a sign that the IPO market has regained some of the momentum lost last week.
According to Renaissance Capital, last week's three initial public offerings raised just $163 million combined. Last week also saw four companies postpone their IPOs. Another four withdrew them entirely.
On Monday, another six companies set terms for public offerings. They operate in a variety of industries, including healthcare, energy, and technology.
The Dow Jones Industrial Average has climbed more than 3% in the last seven trading sessions, after dropping 5% in the previous month. It's a sign of regained market confidence that more companies are holding and filing for IPOs.
Here's a look at this week's new IPOs, plus the best play for investors.
New IPOs, No. 1: Shell Midstream Partners LP (NYSE: SHLX) is the largest IPO this week at roughly $750 million. SHLX is a limited partnership that owns, operates, develops, and acquires oil pipelines and other midstream assets. The company was originally formed by Royal Dutch Shell Plc. (NYSE ADR: RDS.A). SHLX will offer 37.5 million shares at a range of $19 to $21. The company reported revenue of $80 million in the six months ending June 30. If SHLX raises $750 million, it will have a market valuation of $2.8 billion. SHLX stock will trade on the New York Stock Exchange starting Wednesday, Oct. 29.
Shell Midstream will be the largest MLP to hold an IPO in 2014. SHLX stock has the most potential among this week's upcoming IPOs (even while oil prices remain low.) The company has four pipelines located in Texas, Louisiana, Mississippi, and one along the East Coast. Through the first two quarters of 2014, the company's revenue grew 47%. SHLX also has the strong reputation of Royal Dutch Shell behind it.
Money Morning Members: Continue reading for the rest of this week's new IPOs. For those new to Money Morning, sign up to continue - it's completely free...
New IPOs, No. 2: Sientra Inc. (Nasdaq: SIEN) plans to raise $75 million by selling 5 million shares at a range of $14 to $16. Sientra is an early-stage producer of the silicone used in breast implants. The company is based in Santa Barbara, Calif. In the first six months of 2014, SIEN had revenue of $22 million. However, the company estimates that the market for its products was roughly $600 million in 2013. Following the IPO, SIEN should have a market cap of $230 million. SIEN shares will debut on Wednesday, Oct. 29.
New IPOs, No. 3: Boot Barn Holdings (NYSE: BOOT) is a western apparel and footwear retailer that operates 158 stores throughout the Southwestern United States. Through the IPO, BOOT is planning to raise $75 million by selling 5 million shares at a $14 to $16 range. In the last year, Boot Barn had revenue of $281 million. After the IPO the company should have a market valuation of $398 million. The company estimates that the market for western wear in the U.S. is worth roughly $8 billion. BOOT shares will hit the market on Thursday, Oct. 30.
New IPOs, No. 4: Viking Therapeutics Inc. (Nasdaq: VKTX) had originally planned its IPO for the same week as the Alibaba Group Holding Ltd. (NYSE: BABA) IPO, but postponed the deal. VKTX is looking to raise $55 million with a sale of 5 million shares at a $10 to $12 range. Viking is a biotech company that focuses on diabetes and other metabolic and endocrine diseases. VKTX should have a market cap of roughly $167 million. The company was founded in 2012, and its shares will debut on Tuesday, Oct. 28.
Profit from IPOs Now: Investing in IPOs can be risky for retail investors. Unless you have millions of dollars to invest, you'll probably be left out of the big money. But Money Morning experts have found a way for to play the IPO market and see the types of gains normally reserved for the "Insiders Club"...