Investing

New IPOs Include Biotech Company

IPO
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In the past week, two of the top five initial public offerings (IPOs) of the year to date made it to the public markets. Etsy Inc. (NASDAQ: ETSY) and Aduro Biotech Inc. (NASDAQ: ADRO) both began trading on Friday and both posted a first-day pop of more than 100%. Five other IPOs also hit the markets last week, and as of Friday’s close six of the seven had posted a positive return.

One potential IPO was withdrawn last week. First Foundation, a wealth-manager and commercial bank, had delayed an IPO of 2.2 million shares at an expected price of $21 to $24 a share originally scheduled for May 2014. The company withdrew its plans last week citing poor market conditions.

IPO ETF manager Renaissance Capital reported that 43 IPOs have priced in the United States so far this year, down 53% from a year ago. Total proceeds raised through April 17, 2015, equaled $6.8 billion, down 63% compared with the same period in 2014. Of the 43 IPOs that have gone off this year, 20 have come from the health care sector. Last year’s IPO total came in at $85.2 billion, the highest total in the past 10 years. Renaissance Capital does not include “best efforts” or blank check companies in its totals.

Three IPOs are scheduled for the week beginning April 20: a tech company, a real estate investment trust (REIT) and a health care firm.

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National Storage Affiliates Trust is a Maryland REIT that acquires, owns and operates self-storage facilities in the 100 largest cities in the United States. The company plans to offer 20 million shares in an expected price range of $15 to $17 to raise $320 million at a market cap of about $670 million. Joint bookrunners for the offering are Jefferies, Morgan Stanley and Wells Fargo Securities. Co-managers include KeyBanc Capital Markets, Baird, RBC Capital Markets, Suntrust Robinson Humphrey and Capital One Securities. Shares are scheduled to price on Wednesday and begin trading Thursday on the New York Stock Exchange under the ticker symbol NSA.

Apigee Corp. provides a software platform that allows businesses to design, deploy and scale application programming interfaces (APIs) to connect core IT systems, data and applications supporting customers, partners, employees and other users who interact with the business. The company plans to offer 5.1 million shares in an IPO price range of $16 to $18, raising $87 million at a market cap of about $495 million. Joint bookrunners for the offering are Morgan Stanley, JPMorgan and Credit Suisse. Co-managers are Pacific Crest, JMP Securities and Nomura Securities. Shares are scheduled to price on Thursday and to begin trading Friday on the Nasdaq under the ticker symbol APIC.

Viking Therapeutics Inc. is a clinical-stage biopharmaceutical company focused on developing therapies for metabolic and endocrine disorders. The company postponed its IPO originally scheduled for last September, in which it planned to offer 5 million shares in a price range of $10 to $12, raising $55 million at a market cap of about $167 million. In the current offering, Viking plans to sell 2.5 million shares in an expected price range of $7 to $9 to raise $20 million at a market cap of about $69 million. The sole bookrunner for the offering is Laidlaw & Co. (U.K.) and the co-manager is Feltl and Company. Shares are scheduled to price on Thursday and to begin trading Friday on the Nasdaq under the ticker symbol VKTX.

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