According to Renaissance Capital, 94 companies have made their public debuts so far in 2014 - so this week's four initial public offerings constitute a slow week on the 2014 IPO calendar.
Among this year's public offerings, 39 healthcare firms have gone public. That trend continues this week, as two of the four IPOs are from the healthcare sector.
While the healthcare sector has two IPOs, the biggest deal of the week takes place on Friday when the asset-management firm Ares Management LP (NYSE: ARES) begins trading on the New York Stock Exchange. ARES is looking to raise approximately $400 million in its IPO, which far outpaces this week's other three companies.
Here are this week's four IPOs and all the details investors should know ahead of their debuts...IPO Calendar: Four Companies Hitting the Market This Week
Aldeyra Therapeutics (Nasdaq: ALDX) was scheduled to hit the market last week, but has delayed its IPO until Friday, May 2. ALDX develops treatments for rare diseases of the skin and eyes. Its lead drug candidate is NS2, which is being tested for the treatment of several skin and eye diseases. The company plans to raise $13 million by offering 1.2 million shares at a range of $10 to $12. That would give ALDX a market cap of $63 million. ALDX looks like a speculative stock for investors, as the company reported no revenue last year. If any of its drug candidates receive Food and Drug Administration (FDA) approval, the stock could see big gains. But as Money Morning's BioScience Investment Specialist Ernie Tremblay has pointed out, the FDA approval process is arduous, and many drug candidates fail to meet every requirement.
Ares Management LP (NYSE: ARES) is expected to begin trading on the New York Stock Exchange on Friday, May 2. ARES is a Los Angeles-based asset-management firm with more than $74 billion in assets under management. The company plans to raise $400 million by offering 18.2 million shares at a range of $21 to $23. That makes the ARES deal the biggest IPO this week. If ARES meets the midpoint of that range, the company will have a market value of $4.7 billion. In the last year, ARES has reported revenue of $693 million.
ALDX and ARES aren't the only companies making their debut this week. Check out these other two IPOS...
Papa Murphy's (Nasdaq: FRSH) is looking to raise $70 million by offering 5.8 million shares at a range of $11 to $13 when it makes its public debut on the Nasdaq on Friday, May 2. Based in Vancouver, Wash., Papa Murphy's is the fifth-largest pizza chain in the United States and is mostly known for its "Take N' Bake" pizzas. The company expects to have a market valuation of $204 million following its IPO. Last year, FRSH reported revenue of $80 million.
SCYNEXIS (Nasdaq: SCYX) is another company that delayed its IPO last week and is expected to go ahead with its IPO this week. SCYX is a pharmaceutical company that develops treatments for life-threatening fungal infections. The company plans to raise $55 million in its IPO by selling 7.3 million shares at a range of $7 to $8 per share. At the midpoint of that range, SCYX would have a valuation of $143 million. SCYX was founded in 1999 and reported $17 million in sales in the past year.
Do you invest in IPOs? Which IPO do you think is this week's best investment? Join the conversation on Twitter @moneymorning using #IPOs.
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