Of eight initial public offerings (IPOs) scheduled for last week, six priced and began trading, one was snatched up by a bigger firm at the eleventh hour, and one failed to price.
The week's marquee IPO, AppDynamics, ended up taking a 68% premium in an acquisition by Cisco Systems Inc. (CSCO) that essentially doubled the company's implied market cap from an IPO.
Three IPOs saw first day pops: ELD-WEN Holding Inc. (JELD) raised $575 million with a 14% jump on its first day of trading; REV Group Inc. (REVG) also popped 14% and raised $275 million; and AnaptysBio Inc. (ANAB) popped 13% after raising $75 million. Jounce Therapeutics Inc. (JNCE) popped 8% after raising $102 million.
Jagged Peak Energy Inc. (JAG) slid 8% on its first day of trading after raising $474 million and ObsEva SA (OBSV) dropped 22% after a capital raise of $97 million. The one company that did not make it out the door was Visterra Inc.
Through the week ending January 27, IPO ETF manager Renaissance Capital reported that 7 IPOs have priced in the U.S. so far this year, compared with none a year ago. Total proceeds raised through last week equaled $2.1 billion. For 2016, Renaissance Capital reported a total of 105 IPOs, down 38% year over year from 170 in 2015. Total 2016 proceeds amounted to $18.8 billion compared with a 2015 total of $30 billion. Renaissance Capital does not include “best efforts” or blank-check companies in its totals, nor does it include IPOs that raise less than $10 million.
In the coming week, seven firms are planning IPOs: one REIT, one for-profit education company, one power company, two energy companies, and two biotechs.
Here's a look at the companies scheduled to test the market this week:
Laureate Education Inc. is the world's largest network of higher-education degree-granting institutions with more than 1 million students enrolled at 88 schools in 28 countries. The company plans to offer 29 million shares in an expected price range of $17 to $20 to raise $536.5 million at an implied market cap of $2.47 billion. Joint bookrunners for the offering are Credit Suisse, Morgan Stanley, Barclays, Macquarie Capital, J.P. Morgan, BMO Capital Markets, Citi, and Goldman Sachs. Co-managers include Baird, Barrington Research, Piper Jaffray, Stifel, William Blair, Bradesco BBI, and BTG Pactual. Shares are scheduled to price Tuesday and begin trading Wednesday on the Nasdaq under the ticker symbol LAUR.
Braeburn Pharmaceuticals Inc. is a commercial-stage company developing and commercializing novel long-acting medications for serious disorders of the central nervous system. The company plans to offer 7.7 million shares in an expected price range of $18 to $21 to raise $150 million at an implied market cap of $575 million. Joint bookrunners for the offering are J.P. Morgan, BofA/Merrill Lynch, and Deutsche Bank. Co-manager is Canaccord Genuity. Shares are scheduled to price Wednesday and begin trading Thursday on the Nasdaq under the ticker symbol BBRX.
Invitation Homes Inc. is a REIT that owns and operates single-family homes for rent in the United States. The company plans to offer 77 million shares in an expected price range of $18 to $21, raising $1.5 billion at an implied market cap of $5.89 billion. Joint bookrunners for the offering are Deutsche Bank, J.P. Morgan, BofA/Merrill Lynch, Goldman Sachs, Wells Fargo Securities, Credit Suisse, Morgan Stanley, and RBC Capital Markets. Co-managers include Blackstone Capital Markets, BTIG, Evercore ISI, FBR Capital Markets, JMP Securities, Keefe Bruyette Woods, Raymond James, Siebert Brandford Shank, and Zelman Partners LLC. Shares are expected to price Wednesday and begin trading Thursday on the New York Stock Exchange under the ticker symbol INVH.
IC Power Ltd. is a Singapore-based owner, developer, and operator of power facilities in key Latin American markets. The company plans to offer 25.9 million shares in an expected price range of $12 to $15 to raise about $350 million at an implied market cap of $1.43 billion. Joint bookrunners for the offering are BofA/Merrill Lynch, Credit Suisse, Goldman Sachs, and UBS Investment bank. Co-managers are HSBC Corp., Scotiabank/Howard Weil, and Credicorp Capital. Shares are set to price Thursday and begin trading Friday on the New York Stock Exchange under the ticker symbol ICP.
Kimball Royalty Properties LP is a limited partnership formed to own and acquire mineral and royalty interests in oil and natural gas properties in the United States. The firm plans to offer 5 million common units in an IPO price range of $19 to $21 to raise $100 million at an implied market cap of $327 million. Joint bookrunners for the offering are Raymond James, RBC Capital Markets, and Stifel. Co-managers are Stephens Inc. and Wunderlich Securities. Common units are scheduled to price Thursday and begin trading Friday on the New York Stock Exchange under the ticker symbol KRP.
Ramaco Resources Inc. is a metallurgical coal mining company with properties in West Virginia, Virginia, and Pennsylvania. The company plans to offer 6 million shares in an expected price range of $12 to $15 raising $81 million at an implied market cap of $527 million. Joint bookrunners for the offering are Credit Suisse, Jefferies, BMO Capital Markets, Clarkson Capital Markets, and The Seaport Group. Shares are scheduled to price Thursday and beginning trading Friday on the Nasdaq under the ticker symbol METC.
Returning for a second try at an IPO is Visterra Inc., a clinical-stage biopharmaceutical company applying its proprietary platform to identify unique disease targets and then design and engineer innovative antibody-based therapies that are intended to be effective as a single-dose administration. The company plans to offer 3.9 million shares in an expected price range of $12 to $14 to raise $50 million at an implied market cap of $212 million. Joint bookrunners for the offering are Leerink Partners and Stifel. Co-managers are Needham & Co., and Wedbush PacGrow. Shares are listed as day-to-day and are set to trade on the Nasdaq under the ticker symbol VIST.
