Both potential initial public offerings (IPOs) on last week’s calendar succeeded in entering the public markets and raising a combined total of $574 million. The coming week’s calendar lists three potential IPOs looking to raise about $310 million.
Last Thursday, Clementia Pharmaceuticals Inc. (NASDAQ: CMTA) raised $120 million in an upsized offering of 8 million shares at the high end of the expected range of $13 to $15. The Montreal-based firm got a first-day pop of 9% and closed the week up 73%.
Venator Materials PLC (NYSE: VNTR) raised $454 million in its Friday IPO. The company sold 22.7 million shares at the low end of an expected range of $20 to $21. Shares popped 3.3% on their first day of trading.
Through the week ending July 28 IPO ETF manager Renaissance Capital reported that 88 IPOs have priced in the U.S. so far this year, up more than 57% year over year. Total proceeds raised through last week equaled $22 billion, up 140% 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 Copenhagen-based Zealand Pharma A/S, a biotech firm developing peptide-based treatments for type-2 diabetes. The company plans to offer 3.9 million American Depositary Shares at $19.30 per ADS to raise $75 million at a market cap of $582 million. Each ADS is represents one ordinary share. Underwriters for the offering are Morgan Stanley, Goldman Sachs, Guggenheim Securities, and Needham & Co. The ADSes are expected to begin trading Wednesday on the Nasdaq under the ticker symbol ZEAL.
Contura Energy Inc. is a coal company created by the restructuring of Alpha Natural Resources. The company plans to offer 6 million shares in an expected price range of $23 to $27, raising $150 million at an implied market cap of $728 million. Underwriters include Citi, Jefferies, Credit Suisse, UBS Investment Bank, Barclays, BMO Capital Markets, Clarksons Platou Securities, FBR Capital Markets, and The Seaport Group. Shares are expected to price Wednesday and begin trading Thursday on the New York Stock Exchange under the ticker symbol CTRA.
Ranger Energy Services Inc. provides well services in the Permian Basin. The company plans to offer 5 million shares in an expected price range of $16 to $18 to raise $85 million at an implied market cap of $240 million. Underwriters include Credit Suisse, Simmons & Co., Wells Fargo Securities, Barclays, Evercore ISI, Capital One Securities, Johnson Rice & Co., Raymond James, and Scotia Howard Weil. Shares are expected to price Thursday and begin trading Friday on the Nasdaq under the ticker symbol RNGR.