IPO Market Heats Up Again in Week of September 12

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The market for initial public offerings (IPOs) may escape the summer doldrums this week. Four new IPOs are on the calendar and a fifth has returned for another try with revised terms. The first energy IPO of the year is among the four new filings which also include one tech firm and two financial companies. The returner is a biotech company

Through the week ending September 9, IPO ETF manager Renaissance Capital reported that 59 IPOs have priced in the U.S. so far this year, down 55% from a year ago and unchanged from last week. Total proceeds raised through last week equaled $9.8 billion, down more than 56% compared with the same period in 2015. Of the 59 IPOs that have gone off this year, 30 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, nor does it include IPOs that raise less than $10 million.

Noble Midstream Partners LP is a spin-off from Noble Energy Inc. (NYSE: NBL) and includes midstream services in the Denver-Julesburg Basin of Colorado. The master limited partnership (MLP) plans to issue 12.5 million common units in an IPO price range of $19 to $21 to raise $250 million at an implied market cap of $318 million. Joint bookrunners for the offering are Barclays, Baird, J.P. Morgan, BofA/Merrill Lynch, Citi, Deutsche Bank, DNB Markets, Mizuho Securities, Mitsubishi UFJ Securities, and Wells Fargo Securities. Co-managers include BB&T Capital Markets, BNP Paribas, CIBC, Fifth Third Securities, PNC Capital Markets, ScotiaBank/Howard Weil, Soc Gen, SMBC Nikko, and TD Securities. Common units are expected to price Thursday and begin trading Friday on the New York Stock Exchange under the ticker symbol NBLX.

Bermuda-based Bank of N.T. Butterfield & Son Ltd. is a full-service bank and wealth management company with services available in Bermuda, the Cayman Islands, Guernsey, The Bahamas, Switzerland, and the United States. The group plans to offer 10.64 million shares in an expected price range of $22 to $25 to raise $250 million at an implied market cap of $1.25 billion. Joint bookrunners for the offering are Goldman Sachs, Citi, and Sandler O’Neill. Co-managers are Keefe Bruyette Woods, Raymond James, and Wells Fargo Securities. Shares are set to price Thursday and begin trading Friday on the New York Stock Exchange under the ticker symbol NTB.

FB Financial Corp. is a bank holding company based in Nashville, Tennessee, and includes 45 full-service branches and also serves 12 community markets. The bank plans to offer 5.88 million shares in an expected price range of $16 to $18 to raise $100 million at an implied market cap of $393 million. Joint bookrunners for the offering are J.P. Morgan, UBS Investment Bank, and Keefe Bruyette Woods. Co-managers are Raymond James, Sandler O’Neill, and Stephens, Inc. Shares are expected to price Thursday and begin trading Friday on the New York Stock Exchange under the ticker symbol FBK.

Everbridge Inc. is a global software provider of mass messaging and mission-critical communications services to enterprises. The company plans to offer 7.5 million shares in an expected price range of $11 to $13, raising $90 million at an implied market cap of $329 million. Joint bookrunners are Credit Suisse and BofA/Merrill Lynch. Co-managers include Stifel, Pacific Crest, Raymond James, Canaccord Genuity, and William Blair. Shares are expected to price Thursday and begin trading Friday on the Nasdaq under the ticker symbol EVBG.

Back for another try at an IPO is AzurRx Biopharma Inc. which is developing non-systemic biologics for the treatment of gastrointestinal disorders. The company has reduced the number of shares it plans to sell, from 2.1 million shares to 1.7 million while maintaining an expected price range of $6 to $8 to raise $12 million at an implied market cap of around $74 million. Joint bookrunners for the offering are WallachBeth Capital and Network 1 Financial Securities. The IPO is listed only as “week of September 12” and is expected to trade on the Nasdaq under the ticker symbol AZRX.