Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



2 New Issues IPO Investors Need to Know About This Week

Looks like it's time for fresh stock issues to take a little break. This week, only two issues of significant size are slated to hit the exchange, pharmaceutical concerns SCYNEXIS and Quotient. Investors will thus be able to catch their collective breath a little after the busy past two weeks, during which high-profile stocks Sabre, Weibo, and others came on the scene.

Those flotations were successful, but other stocks -- Ally Financial comes to mind, as does La Quinta Holdings -- either didn't rise significantly or have since dropped below their issue prices. This leads some to wonder whether the IPO market is sputtering. Given the number of companies still hoping to list on the exchange, that fear is probably overblown, although we should keep an eye on developments to see whether a trend emerges.

Before we look at this week's pair of picks, we need to issue a few words of caution. IPO investing carries above-average risk, since initial stock prices can be far from the value the market eventually puts on the company's shares. This situation provides immense upside potential, but it also opens the possibility of losing a big chunk of an investment.

Enough of the hand-wringing. Let's dig in.

SCYNEXIS wants to kill the bad stuff in your body. The company concentrates its efforts on anti-infective agents, with its lead product candidate (SCY-078) aimed at the more deadly varieties of invasive fungal infections. The firm says the drug has been effective in animal studies against a range of aggressive infections, which, promisingly, include drug-resistant strains. By the company's estimation, the global market for such products currently stands at roughly $3.6 billion, so it seems there's a strong customer base for it to profit from.

Just over 7.3 million shares of SCYNEXIS are slated to go on sale this week, although the exact day hasn't yet been set. The price per share is to be $7 to $8, and the company is being brought to market by lead underwriters Royal Bank of Canada's (NYSE: RY  ) RBC Capital Markets and Canaccord Genuity. The stock will be listed on the Nasdaq under the ticker symbol SCYX.

Transfusion diagnostics is this firm's specialty. In layman's terms, this means testing for blood grouping and blood plasma disorders. Quotient is new to the market, but its key subsidiary, Alba Biosciences, has been in business for more than 30 years. At the moment, Quotient's efforts are concentrated on MosaiQ, a technology platform that the company intends to be "the first commercially available, fully automated testing platform capable of simultaneously identifying all clinically significant blood-group antigens and antibodies in either donor or patient blood, eliminating manual testing."

Quotient stock will start trading on the Nasdaq this Tuesday under the ticker symbol QTNT. An even 5 million shares will hit the market, priced at $9 to $11 apiece. The underwriters are UBS (NYSE: UBS  ) Investment Bank, Baird, and Cowen Group's (NASDAQ: COWN  ) Cowen & Company.

3 stocks poised to be multibaggers
The one sure way to get wealthy is to invest in a groundbreaking company that goes on to dominate a multibillion-dollar industry. Our analysts have found multibagger stocks time and again. And now they think they've done it again with three stock picks that they believe could generate the same type of phenomenal returns. They've revealed these picks in a new free report that you can download instantly by clicking here now.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2921662, ~/Articles/ArticleHandler.aspx, 9/5/2015 8:29:13 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Eric Volkman

Eric has been writing about stocks and finance since the mid-1990s, when he lived in Prague, Czech Republic. Over the course of a varied career, he has also been a radio newscaster, an investment banker, and a bass player in a selection of rock and roll bands. A native New Yorker, he currently lives in Los Angeles.

Today's Market

updated 11 hours ago Sponsored by:
DOW 16,102.38 -272.38 -1.66%
S&P 500 1,921.22 -29.91 -1.53%
NASD 4,683.92 -49.58 -1.05%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/4/2015 3:59 PM
COWN $5.04 Up +0.01 +0.20%
Cowen Group, Inc. CAPS Rating: ****
RY $53.43 Down -1.03 -1.89%
Royal Bank of Cana… CAPS Rating: ***
UBS $20.06 Down -0.35 -1.71%
UBS AG (USA) CAPS Rating: **