Six New Companies Going Public This Week: BUFF, HCACU, ESSF, LOB, NEOS, BCDA

ipos

iposThere are six new companies going public this week. According to Renaissance Capital, a manager of IPO-focused ETFs, the upcoming IPOs are expected to raise a combined $1.03 billion.

The IPO market rebounded last week as year-to-date IPO returns rose to 18%. Cancer biotech ProNAi Therapeutics Inc. (Nasdaq: DNAI) and cybersecurity firm Rapid7 Inc. (Nasdaq: RPD) saw the largest gains, popping 76% and 58% in their respective debuts.

Leading the pack of new companies going public this week is Blue Buffalo Pet Products Inc. (Nasdaq: BUFF).

Blue Buffalo is the largest producer of all-natural dog and cat food. The Connecticut-based company controls one-third of the "wholesome natural" segment of the retail pet food industry.

The firm's sales reached $1 billion last year. It has almost singlehandedly grown the "wholesome natural" segment from 11% of total pet food sales in 2011 to 17% in 2014.

However, pet food manufacturing is becoming increasingly competitive as competitors Nestle and Freshpet Inc. (Nasdaq: FRPT) have recently introduced new products. Blue Buffalo hopes to raise $502 million by selling 29.52 million shares at a price range of $16 to $18. It is valued at $3.3 billion and will hit the market on Wednesday, July 22.

Here are five more new companies going public this week on the IPO calendar...

Five More New Companies Going Public This Week

Hennessy Capital Acquisition Corp. II (Nasdaq: HCACU) is a blank check company focused on acquiring industrial manufacturing businesses. This is CEO Daniel Hennessy's second IPO after his first firm, Hennessy Capital Acquisition Corp., went public as a special purpose acquisition company (SPAC) - a company that raises money solely to acquire another company. The SPAC bought bus manufacturer Blue Bird this past February. HCACU is set for a $175 million deal and will offer 17.5 million shares for $10 each. It commands a $219 million valuation and will start trading on Thursday, July 23.

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ETRE REIT LLC (Nasdaq: ESSF) is a real estate investment trust (REIT) formed to own a 49% interest in the State Street Financial Center building in Boston. The skyscraper houses the global headquarters of financial holding company State Street Corp. (NYSE: STT). Although ETRE targets a high annual yield of 5%, investors may be turned off by the company's exposure to a single building leased to a single tenant. ETRE will generate $173 million by selling 11.5 million shares for $15 each. The REIT is valued at $354 million and will debut sometime this week.

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Live Oak Bancshares Inc. (Nasdaq: LOB) is an online lender for small niche businesses across the United States. The North Carolina-based company sells loans to small businesses in a select group of industries, including veterinary medicine, dental practice, and farming. Live Oak raked in $71 million in revenue between March 2014 and March 2015. It's set to raise $68 million by offering 4 million shares at a price range of $16 to $18. The company is valued at $577 million and will start trading sometime this week.

Neos Therapeutics Inc. (Nasdaq: NEOS) will raise $60 million by selling 4 million shares at a $14 to $16 price range. The ADHD-focused biotech will hit the market on Thursday, July 23.

BioCardia Inc. (Nasdaq: BCDA) is set for a $50 million deal by offering 3.846 million shares at a price range of $12 to $14. The heart failure treatment firm will debut sometime this week.

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