As it's done several times this year, the IPO world will take a little break this week. That respite will come in handy for a market that's seen a torrent of issues over the past two weeks.
Several of those enjoyed serious pops on their first day of trading. Specifically, action photography specialist GoPro (NASDAQ:GPRO) and alt-power company NextEra Energy Partners (NYSE:NEP) both closed 31% higher than their respective issue prices on their first day of trading.
This week might not be as exciting. At the moment, only four issues are slated to hit the market between today and Friday. None is anticipated to take in more than $66 million in gross proceeds.
Before we get into this week's pair of IPO picks, we have to issue our standard warning -- 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 substantial part of an investment.
Thanks for listening. Now, without further ado ...
To corrupt the famous quote, the only sure things in life in 2014 are death, taxes, and at least one biopharma IPO every other week. Taking its turn on the runway is Minerva Sciences, a clinical-stage company that concentrates on developing solutions to treat disorders of the central nervous system. It has two lead product candidates, one a treatment for schizophrenia, and the other a drug for major depressive disorder, and stands to do well if it can effectively bring at least one to market.
Just over 5.45 million shares of Minerva Neurosciences will go on sale Tuesday at a price of $10 to $12 apiece. The stock should list on the Nasdaq under the highly appropriate ticker symbol NERV. The issue's lead underwriter is Leucadia National's (NYSE:JEF) Jefferies.
Although somewhat unheralded, the regional-banks segment of the financial sector has a number of stocks that have climbed high on the exchange in recent years -- US Bancorp (NYSE:USB) and KeyCorp (NYSE:KEY) have more than doubled in price since mid-to-late 2011, to name but two. Modest lender Investar Holding will be hoping to benefit from the bullish sentiment driving up the prices of its peers. The company has nine branches throughout Louisiana, with total assets just under $674 million. Its finances look solid, with admirable growth in both the aforementioned assets and profitability.
Investar Holding will make its stock market debut on Tuesday, trading on the Nasdaq under the ticker symbol ISTR. A total of 2.875 million shares will be offered for $15 to $17 per share, and the lead underwriters are Sandler O'Neill + Partners and Sterne Agee.