IPO Market Rolls On After Best Week of 2016

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There were 8, yes, 8, completed initial public offerings (IPOs) last week, and every one of them posted a first-day pop and all finished the week with a positive return. Five more IPOs are on the calendar for this week, including a technology unicorn, a healthcare REIT, two healthcare offerings, and a networking company.

Last week’s largest capital raise was Valvoline Inc.’s (NYSE: VVV) $660 million spin-off from Ashland Inc. (NYSE: ASH). The motor oil and lubricant company’s market cap at the time of the IPO was $4.4 billion, and shares gained 5% at the end of the first day’s trading.

The biggest first-day pop for the week was posted by The Trade Desk Inc. (NASDAQ: TTD), a programmatic platform for digital advertising, that priced above its expected range and still jumped 67% on its first day out.

Late-stage biotech Novan Inc. (NASDAQ: NOVN) priced at the low end of its range, got a 65% first-day pop, and closed the week up 83%.

Through the week ending September 23, IPO ETF manager Renaissance Capital reported that 71 IPOs have priced in the U.S. so far this year, down 47% from a year ago and up by 8 compared with last week. Total proceeds raised through last week equaled $11.8 billion, down more than 48% compared with the same period in 2015. Of the 71 IPOs that have gone off this year, 32 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.

Here are the five IPOs on the coming week’s calendar.

Full Spectrum Inc. designs and sells a software-defined radio technology for wireless networks. The company plans to offer 1.9 million shares in an expected price range of $7 to $9 to raise $15 million at an implied market cap of $48.7 million. Sole bookrunner for the offering is Joseph Gunnar & Co. The IPO was delayed from last week and is listed only as “week of” for the coming week. Shares are expected to trade on the Nasdaq under the ticker symbol FMAX.

Fulgent Genetics Inc. that provides genetic testing to improve the overall quality of patient care. The company plans to offer 4.6 million shares in an expected price range of $12 to $14 to raise about $60 million at an implied market cap of around $227 million. Joint bookrunners for the offering are Credit Suisse, Piper Jaffray, and Raymond James. Co-manager is BTIG. Shares are expected to price Tuesday and begin trading Wednesday on the Nasdaq under the ticker symbol FLGT.

MedEquities Realty Trust Inc. is a REIT that currently includes 21 healthcare facilities including 15 skilled nursing facilities. The company plans to offer 19.9 million shares in an expected price range of $12 to $14 to raise $259 million at an implied market cap of around $393 million. Joint bookrunners for the offering are FBR Capital Markets, J.P. Morgan, Citi, and KeyBanc Capital Markets. Co-managers include Raymond James, RBC Capital Markets, JMP Securities, Fifth Third Securities, and Capital One Securities. Shares are expected to price Wednesday and begin trading Thursday on the New York Stock Exchange under the ticker symbol MRT.

Tabula Rasa HealthCare Inc. is a healthcare technology company that offers risk management programs to reduce adverse drug reactions at long-term care facilities. The company plans to offer 4.3 million shares in an expected price range of $13 to $15, raising about $60 million at an implied market cap of $217 million. Joint bookrunners for the IPO are Wells Fargo Securities, UBS Investment Bank, and Piper Jaffray. Co-managers are Baird and Stifel. Shares are scheduled to price Wednesday and begin trading Thursday on the Nasdaq under the ticker symbol TRHC.

Nutanix Inc. provides a cloud-based platform for what is known as hyperconverged IT infrastructure software and appliances. The company plans to offer 14 million shares in an expected price range of $11 to $13 to raise $168 million at an implied market cap of $1.64 billion. Joint bookrunners for the offering are Goldman Sachs, Morgan Stanley, J.P. Morgan, and RBC Capital Markets. Co-managers include Baird, Needham & Co., Oppenheimer & Co., Pacific Crest, Piper Jaffray, Raymond James, Stifel, and William Blair. Shares are set to price Thursday and begin trading Friday on the Nasdaq under the ticker symbol NTNX.