Four initial public offerings (IPOs) launched last week, the busiest so far in 2016. Next week’s calendar currently includes four more, and the calendar for the month of May now includes a total of 13 IPOs either already launched or scheduled. If that total holds it will be the most deals in any month so far this year.
Last week’s largest IPO was landscaping firm SiteOne Landscape Supply Inc. (NYSE: SITE) which raised $210 million and got a first day pop of 27% before ending the week up 34% above the IPO price of $21. Optical network equipment maker Acacia Communications Inc. (NASDAQ: ACIA) raised $104 million after pricing at the high end of its expected range ($23). The company saw a first day pop of 35% on Friday.
Turning Point Brands Inc. (NYSE: TPB), maker of Zig Zag cigarette rolling papers and other tobacco-related items, raised $54 million after pricing at $10, well below the expected range of $13 to $15. The stock did managed to close the week with a gain of 9%.
Oncobiologics Inc. (NASDAQ: ONSIU) raised $35 million in an IPO delayed from previous week. Shares closed Friday down 20% from the IPO price.
24/7 Wall St.Through the week ending May 13th, IPO ETF manager Renaissance Capital reported that 22 IPOs have priced in the U.S. so far this year, down about 55% from a year ago. Total proceeds raised through last week equaled $3.5 billion, down nearly 70% compared with the same period in 2015. Of the 22 IPOs that have gone off this year, 13 have come from the healthcare sector. Last year’s IPO total came in at $30 billion on 170 offerings. Renaissance Capital does not include “best efforts” or blank-check companies in its totals.
The first of the coming week’s scheduled IPOs is Merus BV, a Netherlands-based clinical-stage immuno-oncology company developing bispecific antibody therapeutics. The company plans to offer 4.3 million shares in an expected price range of $14 to $16 to raise $65 million at an implied market cap of $213.6 million. Joint bookrunners for the offering are Citi and Jefferies. Co-managers are Guggenheim Securities and Wedbush PacGrow. Shares are expected to price Wednesday and begin trading Thursday on the Nasdaq under the ticker symbol MRUS.
PhaseRx Inc. is a pre-clinical biopharmaceutical company developing products for inherited enzyme deficiencies in the liver. The company plans to offer 3.7 million shares in an expected price range of $5 to $7 to raise $22.2 million at an implied market cap of $67.5 million. Joint bookrunners for the offering are Laidlaw & Co. (U.K.) and Roth Capital. Shares are set to price Wednesday and begin trading Thursday on the Nasdaq under the ticker symbol PZRX.
CF Corporation is a blank-check company that plans to offer 60 million units at $10 per unit to raise $600 million in the largest potential IPO of a special-purpose acquisition company (SPAC) since 2008. The company was formed by former executives at Blackstone and FNF. Each unit consists of one Class A share and one-half of one redeemable warrant. Each whole warrant entitles the holder to purchase one Class A share at $11.50 subject to certain limitations. Joint bookrunners for the offering are Citi, BofA/Merrill Lynch, and Credit Suisse. Units are scheduled to begin trading Friday on the Nasdaq under the ticker symbol CFCOU.
Grupo Supervielle SA is a family-controlled  Argentina-based financial group. The company plans to offer 20.8 million shares in an expected price range of $11 to $13, raising $250 million at an implied market cap of about $798 million. Joint bookrunners for the offer are Morgan Stanley and BofA/Merrill Lynch. Co-manager is Raymond James. The shares are expected to price Thursday and begin trading Friday on the New York Stock Exchange under the ticker symbol SUPV.
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