NEW YORK ( TheStreet -- The IPO market is picking up again with Groupon's ( GRPN) successful debut confirming there is investor appetite for the right offerings. Renaissance Capital notes that 11 companies are looking to make the leap next week, and if that comes to pass it will be the busiest week since November 2007. This week's slate of new issues includes Imperva ( IMPV), a Redwood Shores, Calif.-based data security software provider that is seeking to raise $75 million. The company plans to sell 5 million shares at between $14 and $16 each, and is expected to debut on Wednesday. Imperva targets small businesses with its on-demand web application security software with the idea that the product is cost-effective when compared to buying more hardware or hiring more IT people. The company's sales jumped $55 million for the nine months ended in September, up 45% from $38 million in the same period a year earlier. Despite the revenue jump though, Imperva's loss hasn't narrowed much at all, totaling $8.7 million for the latest nine-month period vs. a loss of $8.9 million in the same stretch the previous year. Imperva mostly wants investors to look at its deferred revenue, which is the money it has invoiced but hasn't actually received yet. Deferred revenue, which is based on maintenance and support contracts, sat at $19.1 million for the nine months ended Sept. 30, up 39% from its 2010 total $13.7 million, according to the company's latest S-1 filing with the Securities and Exchange Commission. If investors are looking at Imperva's products as a gauge of whether to buy the new stock, the IPO may be a bit of a tough sell. As the company states in its filing, "We have limited historic financial data, and we operate in a rapidly evolving market, and as such, any predictions about our future revenue and expenses may not be as accurate as they would be if we had a longer operating history or operated in a more predictable market." Hacker fear though is driving the data security market, which is expected to grow to $38 billion in 2014 from $27 billion in 2010. As of March, Imperva has three issued patents and seven pending patents, which isn't considered to be a large number when compared to its competition, which includes IBM ( symbol) and EMC ( symbol). The Imperva deal is rumored to be oversubscribed, and Francis Gaskins, IPO Desktop's president, believes investors should stay on the sidelines. "Unless they have a big uptick from here on, it looks like it's hard to get to cash flow break even for them," said Gaskins.
Another small offering planned for this week is NewLink Genetics ( NLNK), a biotech company with oncology products in clinical trials. The Ames, Iowa-based company is hoping to raise $61 million, proposing to sell 5.5 million shares at between $10 and $12 each. NewLink's lead product is a proposed pancreatic cancer treatment in phase III trials based on its HyperAcute immunotherapy approach, which looks to stimulate the human immune system to combat cancer. The company is pursuing patent protection for specific combination therapies and protection for its novel inhibitor compounds as well as potential second-generation products. As with all biotechs, NewLink's success depends on receiving approval of its products from the Food and Drug Administration. The company has so far received grants from the National Institute of Health and the Department of Defense, development that impress IPO Desktop's Gaskins. "I think it's hard to get money from them and it's impressive," he said. Gaskins likes the company and what it is doing, although he is worried that the clinical trials may take longer than planned. There are other companies competing for this market as well, names like Amgen ( AMGN) and Celgene ( CELG). -- Written by Debra Borchardt in New York. >To contact the writer of this article, click here: Debra Borchardt.
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