A blank-check company and a media company together raised $380 million on the capital markets last week. There are no IPOs currently scheduled for the next three weeks.
Blank-check firm Capitol Investment Group IV (NYSE: CIC.U) raised $350 million by selling 35 million units at $10 per share.
In the largest ever offering under Reg A+ rules, Chicken Soup for the Soul Entertainment (NASDAQ: CSSE) raised $30 million at a market value of $144 million selling 2.5 million shares at $12 each. The stock closed the week down 23%. Reg A+ rules allow companies to raise capital from non-accredited investors where typical IPOs under Regulation D are only allowed to raise money from accredited investors.
Through the week ending August 18, IPO ETF manager Renaissance Capital reported that 91 IPOs have priced in the U.S. so far this year, up more than 54% year over year. Total proceeds raised through last week equaled $22.2 billion, up 136% year over year. Neither of last week’s IPOs is counted in Renaissance Capital’s statistics.
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.