There were three initial public offerings (IPOs) on the calendar last week and all three succeeded in gaining access to the public markets. The total amount raised was $651 million and the average first-day pop was nearly 50%.
Four IPO’s are on the coming week’s calendar and they are looking to raise a combined total of nearly $310 million, less than half of last week’s capital raise.
Here’s a recap of last week’s IPOs:
Blank-check company Black Ridge Acquisition Corp. (NASDAQ: BRACU) raised $120 million by selling 12 million units at $10 per unit. Share were up 1.2% for the week.
Rhythm Pharmaceuticals Inc. (NYSE: RYTM) raised $120 million in an upsized offering of 7.1 million shares that prices at $17 a share, above the expected range of $14 to $16. Shares got a first-day pop of 76.5% and closed the week up 48.5%.
Switch Inc. (NYSE: SWCH) raised $531 million selling 31.25 million shares at $17, also above the expected range of $14 to $16. Shares popped 22.6% on the Friday IPO after reaching a high of nearly 50% above the offering price early in day.
Through the week ending October 7, IPO ETF manager Renaissance Capital reported that 108 IPOs have priced in the U.S. so far this year, up 33% year over year. Total proceeds raised through last week equaled $25.3 billion, up 96% 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.
Here are the four companies seeking a place in the public markets next week.
CarGurus Inc. is a global online marketplace for new and used cars. The company plans to offer 9.4 million shares in an expected price range of $13 to $15 to raise $132 million at an implied market cap of $1.47 billion. Underwriters include Goldman Sachs, Allen & Company, RBC Capital Markets, JMP Securities, Raymond James, and William Blair. Shares are expected to price Wednesday and begin trading Thursday on the Nasdaq under the ticker symbol CARG.
OrthoPediatrics Corp. designs, manufactures, and sells orthopedic implants and instruments for children. The company plans to offer 4 million shares in an expected price range of $12 to $14 to raise $52 million at an implied market cap of $157 million. Underwriters are Piper Jaffray, Stifel, William Blair, and BTIG. Shares are expected to price Wednesday and begin trading Thursday on the Nasdaq under the ticker symbol KIDS.
Restoration Robotics Inc. that develops and sells robotic devices to assist with hair restoration surgery. The company plans to offer 3.13 million shares in an expected price range of $7 to $9 to raise $25 million at an implied market cap of $237 million. Underwriters are National Securities, Roth Capital, and Craig-Hallum Capital Group. Shares are expected to price Wednesday and begin trading Thursday on the Nasdaq under the ticker symbol HAIR.
OptiNose Inc. develops and commercializes products for ear, nose, and throat and allergy specialists. The company plans to offer 6.3 million shares in an expected price range of $15 to $17 to raise $100 million at an implied market cap of $566 million. Underwriters for the offering are Jefferies, Piper Jaffray, BMO Capital Markets, and RBC Capital Markets. Shares are set to price Thursday and begin trading Friday on the Nasdaq under the ticker symbol OPTN.