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

Among the many new stocks coming to market over the next few days are a pair of spinoffs from prominent companies, and a specialty health-care company.

Jul 27, 2014 at 12:00PM

In terms of IPOs, this month is going out with a Fourth of July-sized barrage of fireworks. Twenty-one new stocks should hit the exchange between now and Friday, and several stand to rake in big bucks if their flotations are successful. Out of the 21, 10 should bring in proceeds over $100 million, provided they sell at the midpoint or higher of their announced price range.

Before taking a brief look at the three of the issues I've chosen to highlight this week, our usual word of caution: Investing in IPOs carries an above-average level of risk, as initial stock prices can be far from the value the market eventually puts on the company's shares. IPOs therefore provide great upside potential, but you also run the risk of losing a substantial part of your investment.

Thanks for reading the warning sticker. Now, the picks.

One of the big beneficiaries of the recent wave of IPOs is financial-services powerhouse Blackstone Group (NYSE:BX), which has kept itself busy bringing chunks of its various portfolio holdings to market. Catalent is one such asset -- a biotech that says it's the world's top provider of advanced delivery technologies for a wide variety of drug and consumer-health form factors. The company has managed to grow its top line over the past few years while shaving net loss, for the most part. 

Catalent's IPO will take place on Thursday, and 42.5 million shares will be sold for $19 to $22 apiece. The stock should list on the New York Stock Exchange under the ticker symbol CTLT.

Synchrony Financial
This week's whopper of an IPO is for this niche company, which could take in gross proceeds of over $3.2 billion if its flotation goes well. Synchrony Financial is a spinoff of General Electric (NYSE:GE), or, more accurately, its mighty financial arm, GE Capital. The soon-to-be independent firm concentrates on specialty credit card products and services, and when accounted for as a standalone unit, it has been consistently profitable since 2009, with high net margins.

No less than 125 million shares of Synchrony Financial will go on sale Thursday, listing on the NYSE under the ticker symbol SYF.

Transocean Partners
It'll be a good week for spinoff companies. This one has been formed by offshore oil drilling specialist Transocean (NYSE:RIG), and it will begin life with 51% ownership stakes in three of its mother company's rigs in the Gulf of Mexico. Apparently those facilities are nice and productive, as Transocean Partners would have taken in $148 million in revenues and netted a profit of $63 million in Q1 if it had existed as an independent entity back then.  

We'll see 17.5 million units of Transocean Partners offered for sale on Thursday. The price is $19 to $21 per unit, and the stock will trade on the NYSE under the ticker symbol RIGP.

Risk-free for 30 days: The Motley Fool's flagship service
Tom and David Gardner founded The Motley Fool over 20 years ago with the goal of helping the world invest ... better. Their flagship service, Stock Advisor, has helped thousands of investors take control of their financial lives and beat the market. Click here to sign up today.


Eric Volkman has no position in any stocks mentioned. The Motley Fool recommends Goldman Sachs and owns shares of Citigroup, JPMorgan Chase, The Blackstone Group, and Transocean. 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