3 IPOs to Watch This Week

03/24/2011 8:57 am EST


Wall Street and investors love the excitement that often comes with IPOs, and there’s a handful on the docket right now. Here are three in particular that are worth watching.

By Josh Golebieski

Investor appetite for IPOs is still strong these days. This week, we have a handful of new offerings being brought to the market.

Here, we take a closer look at three new listings. Keep in mind that IPOs don’t always open on the day they are scheduled, and they can often be delayed by a day or two.

China Power Technology Limited (CNPT) is expected to begin trading this week on the Nasdaq. The China-based company is looking to raise $30 million by offering 2.3 million shares between $12 and $14. China Power Technology will command a book value of $172 million at the midpoint of the proposed range.

China Technology specializes in infrared heating systems for outdoor, commercial, and residential use. They recorded $93 million in sales for the 12 months ended September 30, 2010 and earned $19.3 million in profits. Rodman & Renshaw is the lead underwriter. For more information, see the company's prospectus on the Securities and Exchange Commission (SEC) Web site.

Tranzyme Pharma Inc. (TZYM) looks set for an offering today (Thursday, March 24). The company is looking to sell five million shares between $11 and $13 each. Tranzyme plans to use the money to pay for further clinical tests of its drug, Ulimorelin, which is currently in Phase 3 trials. The company is run by CEO Vipin Garg and employs 40 people in the Durham, NC area.

Other than Ulimorelin, the company has three other drugs in its pipeline, all of which treat gastrointestinal issues. Last year Tranzyme booked $8.5 million in revenues, and had net income of ($7.3 million). Citi is the lead underwriter. For more information, see the company's prospectus on the SEC Web site.

Preferred Apartment Communities (APTS) is also set for an IPO sometime during this week as well. The company is headquartered in Atlanta, and was formed to acquire multifamily properties in select markets throughout the United States. This REIT is offering 4.5 million shares priced at $10.

Last year, Preferred Apartments recorded $6.5 million in revenue, and had net income that was approximately $8.1 million. The lead underwriter in the deal is Wunderlich Securities. More information is available in the company's prospectus on the SEC Web site.

By Josh Golebieski of PortfolioTilt.com

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