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As the IPO market prepares for the busiest week of the year, we see a broad spectrum of IPOs, including LBOs, high-growth plays, energy spin-offs and financial firms, all of which could be outnumbered by a wave of biotechs. IPO performance has stabilized after it began falling from an end-of-June peak. Last week, 40% of IPOs broke issue and 80% traded up 1% or less. However, El Pollo Loco’s (NASDAQ:LOCO) 60% first-day pop suggests investor demand for the right deals, and the IPO ETF trades near the midpoint of its YTD range. Expect the others to price below the range.

3 Energy Spin-offs
Three energy spinoffs plan to begin trading on Wednesday (Westlake Chemical Partners LP (NYSE:WLKP)), Thursday (Transocean Partners LLC (NYSE:RIGP), and Friday (VTTI Energy Partners LP, (NYSE:VTTI). Energy IPOs had outperformed during the first quarter, with modest first-day gains and strong follow-through. More recently, valuations have been adjusted upward to match investor demand, especially seen in Eclipse Resources’ (NYSE:ECR) aggressive pricing and subsequent fall.

2 LBOs follow weak returns from 3 last week
This week’s two leveraged buyout IPOs, Catalent (NYSE:CTLT) and SIRVA, plan to IPO after investors showed little interest in any of last week’s three LBOs (Townsquare Media (NYSE:TSQ), Advanced Drainage Systems (NYSE:WMS), Orion Engineered Carbons (NYSE:OEC)). Catalent, which was bought by Blackstone in 2007 for $3.3 billion, is the third IPO backed by the private equity firm this year, following La Quinta ((NYSE:LQ), +12%) in April and The Michaels Companies ((NASDAQ:MIK), -2%) in June. Like Townsquare Media, SIRVA emerged from bankruptcy with the help of its PE backers, Aurora Capital and Equity Group Investments. The employee relocation company hopes to benefit from rising globalization.

2 High-growth IPOs
Last week, El Pollo popped 60% on its potential for growth, assuming it exercises a successful nationwide expansion. This week’s Mobileye (NYSE:MBLY) offers a recipe for high investor demand with rapid growth (102% YoY), cash flow (43% EBITDA margin on $105 million LTM sales) and an enormous market opportunity. The Israeli software maker of advanced driver assistance technology plans to raise $500 million and is backed by Goldman Sachs, Fidelity, Enterprise Rent-A-Car and Blackrock. The month’s other tech IPO, TubeMogul (NASDAQ:TUBE), slashed its IPO price, traded up 64% on its first day and then fell 16% afterward, while consumer growth camera company, GoPro (NASDAQ:GPRO) has been the best performer in the past 60 days. HealthEquity (NASDAQ:HQY) is another fast-growing consumer-facing IPO; sales are up 35% YoY with $68 million in the LTM and an EBITDA margin of 28%.

2 Large financial IPOs

With an expected deal size of $3 billion, Synchrony Financial (NYSE:SYF) will be the year’s largest IPO, at least until Alibaba (NYSE:BABA). The GE spin-off is the fourth $1+ billion financial IPO this year, after Markit ((NASDAQ:MRKT), +9%), Ally Financial ((NYSE:ALLY), -4%) and Santander Consumer USA ((NYSE:SC), -17%). Florida-based FCB Financial (NYSE:FCB), which could raise $222 million, could be the largest bank IPO since Santander Mexico's $2.9 billion IPO in September 2012.

As many as 12 biotech IPOs
12 of the 22 IPOs on the calendar for this week are biotechs. The most active months for the sector this year, February and March, both saw 10 biotechs go public. If the entire group prices, July could see 17 biotech IPOs. Recently, biotechs have suffered poor post-IPO performance and steep valuation cuts. Last week, just one of the the four traded up 1%, while the other three traded flat or down. Standout biotechs Sage Therapeutics (NASDAQ:SAGE) and Kite Pharma (NASDAQ:KITE) have traded down 12% and 24%, respectively, from their first-day pops. Valuations have been slashed more than other sectors, as five out of seven biotech IPOs in the past month have priced below the range.

The following IPOs are expected to price this week:

Atara Biotherapeutics (NASDAQ:ATRA), an early-stage biotech targeting muscle loss in patients with end-stage renal disease, plans to raise $75 million by offering 5.0 million shares at a price range of $14.00 to $16.00. At the midpoint of the proposed range, Atara Biotherapeutics would command a market value of $305 million. Atara Biotherapeutics, which was founded in 2012, booked $0 million in sales over the last 12 months. The Brisbane, CA-based company plans to list on the NASDAQ under the symbol ATRA. Goldman Sachs and Citi are the joint bookrunners on the deal.

Auris Medical Holding (NASDAQ:EARS), a biotech developing treatments for tinnitus and other inner ear disorders, plans to raise $76 million by offering 6.9 million shares at a price range of $10.00 to $12.00. At the midpoint of the proposed range, Auris Medical Holding would command a market value of $285 million. Auris Medical Holding, which was founded in 2003, booked $0 million in sales over the last 12 months. The Zug, Switzerland-based company plans to list on the NASDAQ under the symbol EARS. Jefferies & Co. and Leerink Partners are the joint bookrunners on the deal.

Avalanche Biotechnologies (NASDAQ:AAVL), an early-stage biotech developing a gene therapy for wet AMD, plans to raise $76 million by offering 5.4 million shares at a price range of $13.00 to $15.00. At the midpoint of the proposed range, Avalanche Biotechnologies would command a market value of $353 million. Avalanche Biotechnologies, which was founded in 2006, booked $0 million in sales over the last 12 months. The Menlo Park, CA-based company plans to list on the NASDAQ under the symbol AAVL. Jefferies & Co., Cowen & Company and Piper Jaffray are the joint bookrunners on the deal.

Bio Blast Pharma (NASDAQ:ORPN), a biotech developing treatments for rare and ultra-rare genetic diseases, plans to raise $40 million by offering 3.3 million shares at a price range of $11.00 to $13.00. At the midpoint of the proposed range, Bio Blast Pharma would command a market value of $178 million. Bio Blast Pharma, which was founded in 2012, booked $0 million in sales over the last 12 months. The Tel Aviv, Israel-based company plans to list on the NASDAQ under the symbol ORPN. Oppenheimer & Co. and Roth Capital are the joint bookrunners on the deal.

Catalent, a global provider of oral, injectable and respiratory drug delivery technologies, plans to raise $871 million by offering 42.5 million shares at a price range of $19.00 to $22.00. At the midpoint of the proposed range, Catalent would command a market value of $2.4 billion. Catalent, which was founded in 2007, booked $1.8 billion in sales over the last 12 months. The Somerset, NJ-based company plans to list on the NYSE under the symbol CTLT. Morgan Stanley, J.P. Morgan, BofA Merrill Lynch and Goldman Sachs are the joint bookrunners on the deal.

FCB Financial Holdings, a consolidation of 54 failed and acquired banks in Miami and coastal Florida, plans to raise $222 million by offering 8.7 million shares at a price range of $24.00 to $27.00. At the midpoint of the proposed range, FCB Financial Holdings would command a market value of $1.1 billion. FCB Financial Holdings, which was founded in 2010, booked $142 million in sales over the last 12 months. The Weston, FL-based company plans to list on the NYSE under the symbol FCB. Deutsche Bank, J.P. Morgan, BofA Merrill Lynch and UBS Investment Bank are the joint bookrunners on the deal.

HealthEquity, which offers an integrated platform for managing Health Savings Accounts (HSAs), plans to raise $100 million by offering 9.1 million shares at a price range of $10.00 to $12.00. At the midpoint of the proposed range, HealthEquity would command a market value of $625 million. HealthEquity, which was founded in 2002, booked $68 million in sales over the last 12 months. The Draper, UT-based company plans to list on the NASDAQ under the symbol HQY. JPMorgan and Wells Fargo Securities are the joint bookrunners on the deal.

Lantheus Holdings (NASDAQ:LNTH), which sells medical imaging agents used in the diagnosis of cardiovascular diseases, plans to raise $125 million by offering 9.3 million shares at a price range of $12.00 to $15.00. At the midpoint of the proposed range, Lantheus Holdings would command a market value of $370 million. Lantheus Holdings, which was founded in 1956, booked $286 million in sales over the last 12 months. The North Billerica, MA-based company plans to list on the NASDAQ under the symbol LNTH. Citi and Jefferies & Co. are the joint bookrunners on the deal.

Loxo Oncology (NASDAQ:LOXO), an early-stage biotech developing small molecule therapies to treat solid tumors, plans to raise $57 million by offering 4.4 million shares at a price range of $12.00 to $14.00. At the midpoint of the proposed range, Loxo Oncology would command a market value of $211 million. Loxo Oncology, which was founded in 2013, booked $0 million in sales over the last 12 months. The Stamford, CT-based company plans to list on the NASDAQ under the symbol LOXO. Cowen & Company and Stifel are the joint bookrunners on the deal.

Macrocure (NASDAQ:MCUR), an Israeli biotech developing white blood cell injections to treat hard-to-heal wounds, plans to raise $75 million by offering 5.4 million shares at a price range of $13.00 to $15.00. At the midpoint of the proposed range, Macrocure would command a market value of $264 million. Macrocure, which was founded in 2008, booked $0 million in sales over the last 12 months. The Petach Tikva, Israel-based company plans to list on the NASDAQ under the symbol MCUR. Credit Suisse and Jefferies & Co. are the joint bookrunners on the deal.

Mapi-Pharma (NASDAQ:MAPI), which is developing extended-release formulations of existing drugs and generics, plans to raise $18 million by offering 2.3 million shares at a price range of $8.00 to $8.00. At the midpoint of the proposed range, Mapi-Pharma would command a market value of $118 million. Mapi-Pharma, which was founded in 2008, booked $0 million in sales over the last 12 months. The Ness Ziona, Israel-based company plans to list on the NASDAQ under the symbol MAPI. (Revised terms on 7/25/14. Previously planned to offer 2.6 million shares at $13 to $15 per share.)

Marinus Pharmaceuticals (NASDAQ:MRNS), an early-stage biotech developing an add-on therapy for epilepsy, plans to raise $52 million by offering 4.0 million shares at a price range of $12.00 to $14.00. At the midpoint of the proposed range, Marinus Pharmaceuticals would command a market value of $172 million. Marinus Pharmaceuticals, which was founded in 2003, booked $0 million in sales over the last 12 months. The New Haven, CT-based company plans to list on the NASDAQ under the symbol MRNS. Stifel and JMP Securities are the joint bookrunners on the deal.

Mobileye, an Israeli provider of camera-based technology to avoid automobile collisions, plans to raise $500 million by offering 27.8 million shares at a price range of $17.00 to $19.00. At the midpoint of the proposed range, Mobileye would command a market value of $4.2 billion. Mobileye, which was founded in 1999, booked $105 million in sales over the last 12 months. The Jerusalem, Israel-based company plans to list on the NYSE under the symbol MBLY. Goldman Sachs, Morgan Stanley, Deutsche Bank and Barclays are the joint bookrunners on the deal.

SIRVA (NASDAQ:SRVA), which provides domestic and international relocation services for employees, plans to raise $185 million by offering 11.6 million shares at a price range of $15.00 to $17.00. At the midpoint of the proposed range, SIRVA would command a market value of $637 million. SIRVA, which was founded in 1998, booked $1.5 billion in sales over the last 12 months. The Oakbrook Terrace, IL-based company plans to list on the NASDAQ under the symbol SRVA. Morgan Stanley, Goldman Sachs and JPMorgan are the joint bookrunners on the deal.

Spark Energy (NASDAQ:SPKE), a natural gas and electricity retailer primarily in Illinois and California, plans to raise $60 million by offering 3.0 million shares at a price range of $19.00 to $21.00. At the midpoint of the proposed range, Spark Energy would command a market value of $275 million. Spark Energy, which was founded in 1999, booked $324 million in sales over the last 12 months. The Houston, TX-based company plans to list on the NASDAQ under the symbol SPKE. Baird and Stifel are the joint bookrunners on the deal.

Synchrony Financial, a spin-off of GE's private label credit card and consumer finance business, plans to raise $3.1 billion by offering 125.0 million shares at a price range of $23.00 to $26.00. At the midpoint of the proposed range, Synchrony Financial would command a market value of $20.4 billion. Synchrony Financial, which was founded in 1988, booked $10.5 billion in sales over the last 12 months. The Stamford, CT-based company plans to list on the NYSE under the symbol SYF. Goldman Sachs, JPMorgan, Citi and Morgan Stanley are the joint bookrunners on the deal.

Tobira Therapeutics (NASDAQ:TBRA), a biotech developing an immunotherapy treatment for liver disease (NASH) and HIV, plans to raise $60 million by offering 4.6 million shares at a price range of $12.00 to $14.00. At the midpoint of the proposed range, Tobira Therapeutics would command a market value of $150 million. Tobira Therapeutics, which was founded in 2006, booked $0 million in sales over the last 12 months. The San Francisco, CA-based company plans to list on the NASDAQ under the symbol TBRA. BMO Capital Markets, JMP Securities and Oppenheimer & Co. are the joint bookrunners on the deal.

Transocean Partners LLC, an LLC formed by Transocean to own three deepwater rigs in the Gulf of Mexico, plans to raise $350 million by offering 17.5 million shares at a price range of $19.00 to $21.00. At the midpoint of the proposed range, Transocean Partners LLC would command a market value of $1.4 billion. Transocean Partners LLC, which was founded in 2014, booked $558 million in sales over the last 12 months. The Aberdeen, United Kingdom-based company plans to list on the NYSE under the symbol RIGP. Morgan Stanley, Barclays, Citi and JPMorgan are the joint bookrunners on the deal.

Vascular Biogenics (VBLX), which is developing gene therapies for certain cancers and inflammatory diseases, plans to raise $76 million by offering 5.4 million shares at a price range of $13.00 to $15.00. At the midpoint of the proposed range, Vascular Biogenics would command a market value of $282 million. Vascular Biogenics, which was founded in 2000, booked $0 million in sales over the last 12 months. The Or Yehuda, Israel-based company plans to list on the NASDAQ under the symbol VBLX. Deutsche Bank and Wells Fargo Securities are the joint bookrunners on the deal.

VTTI Energy Partners LP, an MLP formed by VTTI to own refined product and crude oil terminals, plans to raise $350 million by offering 17.5 million shares at a price range of $19.00 to $21.00. At the midpoint of the proposed range, VTTI Energy Partners LP would command a market value of $821 million. VTTI Energy Partners LP, which was founded in 2014, booked $302 million in sales over the last 12 months. The London, United Kingdom-based company plans to list on the NYSE under the symbol VTTI. Citi, JPMorgan, BofA Merrill Lynch and Credit Suisse are the joint bookrunners on the deal.

Westlake Chemical Partners LP, an ethylene producer spun out of Westlake Chemical Corporation, plans to raise $225 million by offering 11.3 million shares at a price range of $19.00 to $21.00. At the midpoint of the proposed range, Westlake Chemical Partners LP would command a market value of $507 million. Westlake Chemical Partners LP, which was founded in 2014, booked $1.2 billion in sales over the last 12 months. The Houston, TX-based company plans to list on the NYSE under the symbol WLKP. Barclays, UBS Investment Bank, BofA Merrill Lynch and Deutsche Bank are the joint bookrunners on the deal.

Zosano Pharma (NASDAQ:ZSAN), a biotech developing a transdermal delivery system to treat osteoporosis, plans to raise $70 million by offering 6.4 million shares at a price range of $10.00 to $12.00. At the midpoint of the proposed range, Zosano Pharma would command a market value of $139 million. Zosano Pharma, which was founded in 2007, booked $3 million in sales over the last 12 months. The Fremont, CA-based company plans to list on the NASDAQ under the symbol ZSAN. Wedbush PacGrow, Ladenburg Thalmann & Co. and Roth Capital are the joint bookrunners on the deal.

Last week, there were 10 IPO pricings. El Pollo Loco Holdings, a Tex-Mex fast food chain with 401 locations primarily in California, was the week's winner, ending up 60% from its IPO price.

Source: 22 U.S. IPOs Planned For The Week Of July 28