2 New Issues IPO Investors Need to Know About for This Week

Business development company TriplePoint Venture Growth, and consumer discount purveyor Coupons.com will make their market debuts over the next few days.

Mar 2, 2014 at 2:00PM

This week won't be a big one for initial public offerings, which is a little out of character for such a busy year. According to the latest figures from IPO specialists Renaissance Capital, as of the end of February 55 filings for new stock issues have been submitted. That's not far from triple the amount (21) at the same point in 2013. Actual flotations, meanwhile, have nearly doubled to 37 from the 20 of January-February 2013.

The IPO pipeline will continue to flow, albeit relatively thinly, over the next few days. As with last week, the next few days will see two market debuts -- a firm in the consumer sector (Coupons.com) and one financial stock (TriplePoint Venture Growth BDC). 

Before tucking in to this week's meal, however, we have to warn that IPO investing carries above-average risk. That's because initial stock prices can be far from the value the market eventually puts on the company's shares. Of course, this situation provides immense upside potential ... though it also presents the chance of losing a big chunk of an investment.

Anyway, on to our duo for this week.

TriplePoint Venture Growth
Business development companies are an interesting play in the financial sector. They function very much like venture capital funds, lending money to small- and mid-sized businesses and profiting on the interest and/or taking equity stakes in return. What's perhaps most appealing about BDCs is that they're required to pay out at least 90% of their gross annual income to their shareholders. TriplePoint Venture Growth, founded by the brain trust behind VC outfit TriplePoint Capital, says it aims to dispense $0.30 to $0.34 per share for the quarter ended March 31, so investors who pounce on the IPO won't have to wait very long to see a return.

If those folks can score shares at the proposed market price of $15, they'll be set for a dividend yield of 8% to 9.1%. This puts TriplePoint VG a bit on the low side of prominent BDCs trading actively on the exchange. Although that range is in the neighborhood of Ares Capital's (NASDAQ:ARCC) 8.4%, Fifth Street Finance (NASDAQ:FCS) and BlackRock Kelso (NASDAQ:BKCC) both trade at over 10%. But it's early days, and if TriplePoint VG's IPO funds are effectively channeled toward productive investments, that yield figure will start to rise.

Just over 8.3 million shares of the BDC are slated to begin trading Thursday on the New York Stock Exchange under the ticker symbol TPVG. The company is being brought to market by Goldman Sachs (NYSE:GS), Morgan Stanley, Wells Fargo Securities, Credit Suisse, and UBS Investment Bank.

Coupons.com
Who doesn't like saving money? This company is hoping the answer is "nobody." It makes its coin by providing a platform upon which retailers and consumer packaged goods companies offer digital coupons to their customers. Last year, the company says, it distributed 315 billion coupons for a total discount value of $510 billion across more than 2,000 different brands. Revenue has grown at a captivating rate, from just over $40 million in 2009 to more than four times that amount last year. Bottom line, however, has been consistently in the red since that time, most recently amounting to $11.2 million in fiscal 2013. But the business model is straightforward and compelling, and the firm's four underwriters include financial strongmen Bank of America (NYSE:BAC) Merrill Lynch and Goldman Sachs.

Coupons.com shares are scheduled to start trading on Friday on the NYSE under the symbol COUP. An even 10 million shares are to be sold at a price of $12 to $14 apiece.  

How to crush the market like a grape
They said it couldn't be done. But David Gardner has proved them wrong time, and time, and time again with stock returns like 926%, 2,239%, and 4,371%. In fact, just recently one of his favorite stocks became a 100-bagger. And he's ready to do it again. You can uncover his scientific approach to crushing the market and his carefully chosen six picks for ultimate growth instantly, because he's making this premium report free for you today. Click here now for access.

 

Eric Volkman owns shares of Ares Capital. The Motley Fool recommends Bank of America and Goldman Sachs, and owns shares of Bank of America. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

1 Key Step to Get Rich

Our mission at The Motley Fool is to help the world invest better. Whether that’s helping people overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we can help.

Feb 1, 2016 at 4:54PM

To be perfectly clear, this is not a get-rich action that my Foolish colleagues and I came up with. But we wouldn't argue with the approach.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich" rated The Motley Fool as the #1 place online to get smarter about investing.

"The Motley Fool aims to build a strong investment community, which it does by providing a variety of resources: the website, books, a newspaper column, a radio [show], and [newsletters]," wrote (the clearly insightful and talented) money reporter Kathleen Elkins. "This site has something for every type of investor, from basic lessons for beginners to investing commentary on mutual funds, stock sectors, and value for the more advanced."

Our mission at The Motley Fool is to help the world invest better, so it's nice to receive that kind of recognition. It lets us know we're doing our job.

Whether that's helping the entirely uninitiated overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we want to provide our readers with a boost to the next step on their journey to financial independence.

Articles and beyond

As Business Insider wrote, there are a number of resources available from the Fool for investors of all levels and styles.

In addition to the dozens of free articles we publish every day on our website, I want to highlight two must-see spots in your tour of fool.com.

For the beginning investor

Investing can seem like a Big Deal to those who have yet to buy their first stock. Many investment professionals try to infuse the conversation with jargon in order to deter individual investors from tackling it on their own (and to justify their often sky-high fees).

But the individual investor can beat the market. The real secret to investing is that it doesn't take tons of money, endless hours, or super-secret formulas that only experts possess.

That's why we created a best-selling guide that walks investors-to-be through everything they need to know to get started. And because we're so dedicated to our mission, we've made that available for free.

If you're just starting out (or want to help out someone who is), go to www.fool.com/beginners, drop in your email address, and you'll be able to instantly access the quick-read guide ... for free.

For the listener

Whether it's on the stationary exercise bike or during my daily commute, I spend a lot of time going nowhere. But I've found a way to make that time benefit me.

The Motley Fool offers five podcasts that I refer to as "binge-worthy financial information."

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. It's also featured on several dozen radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable ... and I don't say that simply because the hosts all sit within a Nerf-gun shot of my desk. Rule Breaker Investing and Answers contain timeless advice, so you might want to go back to the beginning with those. The other three take their cues from the market, so you'll want to listen to the most recent first. All are available at www.fool.com/podcasts.

But wait, there's more

The book and the podcasts – both free ... both awesome – also come with an ongoing benefit. If you download the book, or if you enter your email address in the magical box at the podcasts page, you'll get ongoing market coverage sent straight to your inbox.

Investor Insights is valuable and enjoyable coverage of everything from macroeconomic events to investing strategies to our analyst's travels around the world to find the next big thing. Also free.

Get the book. Listen to a podcast. Sign up for Investor Insights. I'm not saying that any of those things will make you rich ... but Business Insider seems to think so.


Compare Brokers