IPO Week Ahead: The Pace Slows in the Dog Days of August

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There are just five initial public offerings (IPOs) on the calendar for the coming week, and one is a holdover from last week. The seven IPOs that were completed last week posted a total of about $700 million in gross proceeds.

According to Renaissance Capital 188 IPOs have priced in the U.S. so far this year, up 50.4% from a year ago. Total proceeds raised come to $40.5 billion, up nearly 50% from 2013. In the month of July IPO proceeds totaled $8.4 billion, the highest monthly total so far in 2014. So far in 2014 there have been a total of 234 IPOs filed, a rise of nearly 71% year-to-date. Proceeds raised from 2013 IPOs totaled $54.9 billion, the highest total in the past ten years.

The biggest event of the past week was Wednesday’s secondary offering of 12 million shares of Manchester United plc (NYSE: MANU) at $17 a share, a discount of $0.45 a share from the stock’s closing price on Tuesday. Shares opened the week at nearly $18.50 and posted their 52-week high in mid-July. The controlling Glazer family had originally planned to offer 8 million shares.

A holdover from last week, Zosano Pharma Corp., is a clinical stage specialty pharmaceutical company that has developed a proprietary transdermal microneedle patch system to deliver its existing drugs through the skin. The company plans to offer 6.4 million shares in a price range of $10 to $12, and expects to raise gross proceeds of around $70 million. The pricing and trading dates are not set. The stock will trade on the Nasdaq under the ticker symbol “ZSAN”.

Capnia Inc. is a medical diagnostics and therapeutics company that has developed a precision metering technology to measure gas flow. The company plans to offer 2.7 million units in an expected price range of $6.50 to $8.50. Each unit comprises one share of common stock and a warrant to purchase one share of common stock. At the midpoint of the range, Capnia would realize gross proceeds of $20 million at a market cap of about $52.2 million. Units are expected to price on Tuesday and begin trading Wednesday on the Nasdaq under the ticker symbol CAPNU. Shares alone will trade as CAPN and warrants only will trade as CAPNW.

GWG Holdings Inc. operates as a secondary market for life insurance policies. The company plans to offer 1.6 million shares in an expected IPO price range of $11.50 to $13.50. At the midpoint the company’s market cap would be about $110 million and it would raise proceeds totaling $20 million. Pricing and trading dates have not been set. The stock will trade on the the Nasdaq under the ticker symbol GWGH.

Otonomy Inc. is a clinical stage biopharmaceutical company developing therapies to treat disorders and diseases of the ear. The company plans to offer 5.3 million shares in an IPO price range of $14 to $16, raising $80 million at a market cap of around $290 million. Last week Auris Medical Holding AG (NASDAQ: EARS) came public at $6 a share, well below its expected range of $10 to $12 a share. Otonomy is expected to price its shares on Tuesday and begin trading Wednesday on the Nasdaq under the ticker symbol OTIC.

C1 Financial Inc. is a Florida-based bank with 28 branches in the state offering relationship banking services to entrepreneurs and their families. The bank plans to offer 2.6 million shares in an expected price range of $18 to $20. At the midpoint the company would raise gross proceeds of around $50 million at a market cap of about $303 million. Shares are expected to price on Wednesday and begin trading Thursday on the New York Stock Exchange under the ticker symbol BNK.

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