Following the hot initial public offerings last week of Rocket Fuel (FUEL) and FireEye (FEYE), three more tech IPOs set for this week are getting a close look, as are pending biotech IPOs.
RingCentral (RNG), which is expected to launch Friday, provides business communications services using a cloud-based, software-as-a-service architecture. RingCentral reports $136 million in sales for the 12 months ended June 30. It plans to list on the NYSE under the symbol RNG.
Research firm IPOboutique.com said its channel checks indicate strong demand, saying "the IPO is already oversubscribed to a strong retail and institutional book.
The San Mateo, Calif.-based company plans to raise $90 million by offering 7.5 million shares at $11 to $13 per share, giving it a market value of about $808 million.
Also expected to start trading Friday is Violin Memory (VMEM), a manufacturer of flash memory arrays for the business market. It competes with Fusion-io (FIO), among others.
The Mountain View, Calif-based company plans to raise $162 million by offering 18 million shares at $8 to $10, giving it a market value of about $877 million. Violin booked $95 million in sales for the 12 months ended July 31, and plans to list on the NYSE under the symbol VMEM. IPOboutique said the Violin IPO also is oversubscribed.
The flash-storage market has been in the news. On Sept. 9, Western Digital (WDC) announced it would acquire flash storage supplier Virident Systems for $685 million, as IBD reported. A day later Cisco Systems (CSCO) announced it would acquire flash storage provider Whiptail for $415 million. Here is IBD's report.
Another tech IPO, Covisint (COVS), is expected to start trading on Thursday. The Detroit, Mich.-based company provides a cloud-based data sharing platform primarily for auto and health care customers. It plans to raise $64 million by offering 6.4 million shares at $9 to $11, giving it a market value of about $395 million.
Covisint says it had sales of $94 million for the 12 months ended June 30. It plans to list on the Nasdaq under the symbol COVS. IPOboutique said this IPO is oversubscribed as well.
Among biotechs,Ophthotech (OPHT), a late-stage biotech developing novel drugs for eye diseases, is getting a lot of looks. It's scheduled to launch Wednesday.
On Tuesday, the New York-based company raised its offering plans to 7.6 million shares at $19 to $20 a share, indicating strong demand. It previously filed to sell 5.7 million shares at $16 to $19. Ophthotech plans to list on the Nasdaq under the symbol OPHT.
Last week, biotech firm Acceleron Pharma (XLRN) surged in its stock market debut. The IPO raised $83.7 million for the developer of drugs for cancer and rare diseases, as IBD reported. Acceleron Pharma sold 5.6 million shares priced at $15 each, and finished at $19.99, up 33%. Acceleron stock was up more than 7% in late trading in the stock market Tuesday, near 21.50.