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.

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.  

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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.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.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.

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