To no one’s particular surprise, neither of the initial public offerings (IPOs) scheduled for last week made it out the door. Both are likely to try again in the coming week.
Through the week ending November 25 IPO ETF manager Renaissance Capital reported that 97 IPOs have priced in the U.S. so far this year, down about 42% from a year ago. Total proceeds raised through last week equaled $17.3 billion, down 42% compared with the same period in 2015. Of the 97 IPOs that have gone off this year, 41 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 that will try again to enter the public equity markets in the coming week.
Eagleline Acquisition Corp. is a blank-check company that intends to concentrate its efforts on businesses supplying services to the healthcare industry. The firm plans sell 15 million units at $10 per unit to raise $150 million. Each unit includes one share of class A common stock and one-half of one warrant to purchase an additional share. Units are listed as day-to-day and will trade on the Nasdaq under the symbol IGLEU.
Innovative Industrial Properties Inc., a REIT focused on the acquisition, ownership, and management of specialized industrial properties leased to experienced, state-licensed operators for their regulated medical-use cannabis facilities has reduced the number of shares it plans to offer. The company now plans to offer 5 million shares (down from 8.8 million) at $20 per share to raise $100 million. Company management also agreed to forfeit 100% of its zero-cost basis shares in order to get the deal done. Shares are expected to price Wednesday and begin trading Thursday on the NYSE under the ticker symbol IIPR. See our weekly Marijuana News Roundup for another hurdle that the company faces.