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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.