IPO’s in focus (MEDS,RVMD,TFII)

Markets dove overnight on virus concerns out of China. Wall Street may suspect they’ll stabilize and if I’m right, traders may be looking for opportunities to sell Puts in FAANG stocks like AAPL. Some IPO’s hitting the market today:

MEDS –  Trxade Group 

This is a business to business online distributor for pharmacies across the nation. This is a small deal at only 6 million and only 800k shares offered. They have shown decent growth (31%), low profits and no debt. Their underwriters aren’t impressive either so that makes this a wait and see for me. The low share float makes it interesting, but I’ll wait to see how the market treats it first. 

RVMD – Revolution Medicines

This is a clinical stage oncology bio-tech company. As I’ve mentioned before the biotech sector has been hot for IPOs which bodes well for this IPO. Additionally, the deal is very oversubscribed and therefore they have risen their offering from 10 million shares to 14 million shares and their price range from $14-$16 to $16-$17 pricing at $17. Their underwriters are solid, partnerships are strong current shareholders are highly regarded. So I’m looking for a strong debut here.

TFII – TFI International
This IPO is a canadian logistics and transportation company and this is not a typical IPO as this company already trades on the Toronto stock exchange. It has set it price for debut at $33.15. It has demonstrated very little growth but it’s profits are respectable and it’s debt manageable. It has good underwriters and an established position in the market. I don’t expect fireworks out of this IPO so I’m just going to watch it for strength but I don’t see an opportunity for a huge rise here.