IPO’s going live today (NREF,ONEW,PFHD)

Markets are slightly red this morning as we wait for the Jobs numbers from January. After a big week for the market it will be interesting to see where the market goes today after reaching all time highs yesterday.

NexPoint Real Estate Finance (NREF)
This IPO is a commercial real estate finance company. They are newly formed. Their underwriters aren’t that significant and they have priced at $19 which is the low end of their range at $19-$21 dollars. They enter a competitive field though the real estate sector is hot. Finally, they plan to pay a 8%-8.5% dividend to investors based on the current range.

OneWater Marine Inc (ONEW)

This IPO is a recreational boat dealer with 60 stores in the US spread over 20 dealers in 11 states. The company is growing, making profits and growing it’s revenue as well. Their competitors are also doing well which gives some confidence in the industry. But this IPO was post-poned from back in October when it sought a range of $18-$20 and now is seeking $12-$14 and I have not yet seen where they have actually priced.

Professional Holding (PFHD)

This is an independent community bank in south Florida that is currently trading on the OTC markets but no moving up from there. It’s pricing looking in line with its competitors and those competitors have faired well. Amerant would be one of those. Last year it priced at $13.20 and now trades at $20.35. So this is a relatively safe play with what appears to be little downside but a capped short term upside. It has priced it’s 3.1 million shares at $18.50 which is below the low end of it’s $19-$21 range.