All five potential initial public offerings (IPOs) on last week’s calendar succeeded in entering the public markets and there are two more on the calendar for the coming week. Last week’s capital raise totaled $289 million, not including proceeds from the IPO of a blank-check company.
The most closely watched IPO was Redfin Corp. (NASDAQ: RDFN) which priced 9.23 million shares at $15, above the estimated range, to raise $138 million at a market cap of $1.32 billion. The stock got a first-day pop of 45% on its Friday IPO.
Sienna Biopharmaceuticals Inc. (NASDAQ: SNNA) priced at the midpoint of its expected range of $14 to $16 and sold 4.3 million shares, raising $65 million at a market cap of $317 million. Shares broke issue on the first day of trading, finishing down 28%, but recovered to close the week up 30%.
RBB Bancorp sold 3.8 million shares at $23 a piece, the midpoint of the expected range, raising $86 million at a market cap of $390 million. Shares got a first-day pop of 1.5% and closed the week up 2%.
Two blank-check companies, Industria Acquisition Corp. (NASDAQ: INDUU) and Pensare Acquisition (NASDAQ: WRLSU) completed IPOs as well.
Through the week ending July 28 IPO ETF manager Renaissance Capital reported that 86 IPOs have priced in the U.S. so far this year, up more than 65% year over year. Total proceeds raised through last week equaled $21.4 billion, up 153% year over year. For 2016, Renaissance Capital reported a total of 105 IPOs, down 38% year over year from 170 in 2015. Total 2016 proceeds amounted to $18.8 billion compared with a 2015 total of $30 billion. 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.
First up this week is Clementia Pharmaceuticals Inc., a Montreal-based clinical-stage biopharmaceutical firm developing treatments for bone diseases. The company plans to sell 7.2 million shares in an expected price range of $13 to $15 to raise $100 million at an implied market cap of $416 million. Underwriters are Morgan Stanley, Leerink Partners, Wedbush PacGrow, and BTIG. Shares are scheduled to price Tuesday and begin trading Wednesday on the Nasdaq under the ticker symbol CMTA.
Venator Materials PLC is a maker of titanium dioxide pigments and additives. The company is being spun out of Huntsman Corp. (NYSE: HUN) and plans to offer 22.7 million shares in an expected price range of $20 to $21, raising $465 million at an implied market cap of $2.18 billion. Underwriters include Citi, Goldman Sachs, BofA/Merrill Lynch, J.P. Morgan, Barclays, Deutsche Bank, UBS Investment Bank, RBC Capital Markets, Moelis & Company, HSBC Corp., Nomura Securities, SunTrust Robinson Humphrey, Academy Securities, and Commerzbank Capital. Shares are scheduled to price Wednesday and begin trading Thursday on the New York Stock Exchange under the ticker symbol VNTR.