2 New Issues IPO Investors Need to Know About This Week

Asset-management firm Ares Capital and Papa Murphy's Holdings, a pizza restaurant chain with a twist, will both see their market debuts on Friday.

Apr 28, 2014 at 8:50AM

The IPO market isn't exactly barreling into May. As was the case last week, the coming days will see only a handful of issues making their debuts. The total volume, however, will be significantly higher. This is largely due to the flotation of a big financial, Ares Management, which stands to take in roughly $400 million from its issue.

This dwarfs our second title of the week, restaurant franchiser Papa Murphy's. That company is poised to raise up to $75 million or so when it dishes up its IPO.

Before we take a closer look at either company, we have to issue our standard public service announcement: IPO investing carries above-average risk, as initial stock prices can be far from the value the market eventually puts on the company's shares. This situation provides great upside potential, but it also carries the risk of losing a big chunk of your investment.

With that out of the way, let's move on to our contenders for the week.

Ares Management
One of the better-known companies in the business-development segment, Ares Capital (NASDAQ:ARCC), is actually an offshoot of this sprawling asset-management firm that focuses on alternative financing. Ares Management has taken quite some time to come to market -- it was founded in 1997. Time has fattened it up pretty well; The company's assets under management snowballed from about $5 billion in 2003 to $74 billion last year, and it's been consistently profitable in recent years.

Ares Management's IPO is set for Friday, and the company's ownership units should trade under the ticker symbol ARES on the New York Stock Exchange. Just over 18 million units are to be sold at $21 to $23 apiece, and the lead underwriters are JPMorgan Chase (NYSE:JPM) unit J.P. Morgan and Bank of America Merrill Lynch.

Papa Murphy's Holdings
Want some pizza? If so, this daddy is happy to oblige. The company operates a chain of restaurants that totaled 1,400-plus outlets at the end of 2013 -- a number it claims is over 20 times the size of its nearest competitor. What sets Papa Murphy's apart from the usual pizza joint is that it's a "take 'n' bake" operation, in which customers build raw pies from a selection of ingredients and then take them home to eat. The company's revenue is more or less evenly split between its franchised outlets and its directly owned stores. Total revenue has grown admirably over the past few years, although the bottom line remains slightly in the red.

Slightly more than 5.8 million shares of the company will be floated on Friday, at a price of $11 to $13 per share. The underwriting consortium is led by Baird, Leucadia's (NYSE:LUK) Jefferies, and Wells Fargo (NYSE:WFC) Securities. Papa Murphy's Holdings will trade on the Nasdaq, with its stock bearing the ticker symbol FRSH.

And here are 3 stocks to own for the rest of your life
As every savvy investor knows, Warren Buffett didn't make billions by betting on half-baked stocks. He isolated his best few ideas, bet big, and rode them to riches, hardly ever selling. You deserve the same. That's why our CEO, legendary investor Tom Gardner, has permitted us to reveal The Motley Fool's 3 Stocks to Own Forever. These picks are free today! Just click here now to uncover the three companies we love. 

Eric Volkman owns shares of Ares Capital. The Motley Fool recommends Wells Fargo, and owns shares of Bank of America, JPMorgan Chase, Leucadia, and Wells Fargo. 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