Last week’s initial public offering (IPO) market saw six of seven potential offerings make the jump to the public markets, but the response was less than overwhelming to most. For the coming week there are just two offerings on the calendar and neither is a potential blockbuster
The most successful IPO last week was BlackLine Inc. (NASDAQ: BL) which priced at the high end of an upwardly revised range to raise $146 million. Shares got a first-day pop of 39% on its Friday offering.
Golf equipment maker Acushnet Holdings Corp. (NYSE: GOLF) raised $329 million after pricing at $17, well below the expected range. The stock got a first-day bounce of 6% on Friday.
Ra Pharmaceuticals Inc. (NASDAQ: RARX) raised $92 million after pricing at the mid-point of its range. Shares traded down 1% on Friday.
Quantenna Communications Inc. (NASDAQ: QTNA) priced at the high end of its expected range and raised $107 million. Shares dipped 3% on the first-day of trading Friday.
ZTO Express (NYSE: ZTO) raised $1.4 billion in 2016’s largest IPO to date. Shares priced 11% above the expected range, but dropped 15% on the first day of trading and closed the week down 13%.
Myovant Sciences Ltd. (NYSE: MYOV) priced 11% above its range and raised $218 million. Shares dropped 12% on the first trading day and closed the week down 13%.
Through the week ending October 28 IPO ETF manager Renaissance Capital reported that 94 IPOs have priced in the U.S. so far this year, down 39% from a year ago. Total proceeds raised through last week equaled $16.9 billion, down more than 40% compared with the same period in 2015. Of the 94 IPOs that have gone off this year, 40 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 two IPOs on the coming week’s calendar.
GDS Holdings Ltd. is a Shanghai-based developer and operator of high-performance data centers. The company plans to offer 19.3 million shares in an expected price range of $12 to $14 to raise about $250 million at an implied market cap of $1.21 billion. Shares are expected to price Wednesday and begin trading Thursday on the Nasdaq under the ticker symbol GDS.
Smart Sand Inc. is a pure-play producer of sand used in hydraulic fracturing of oil and gas wells. The company plans to offer 10.6 million shares in an expected price range of $15 to $18 to raise about $175 million at an implied market cap of $522 million. Shares are set to price Thursday and begin trading Friday on the Nasdaq under the ticker symbol SND.