A total of eight companies successfully held their initial public offerings (IPOs) last week, while two delayed until the coming week. Before looking ahead, we’ll take a look back at some of the past week’s IPOs.
Last week’s biggest winner was wearables maker Fitbit Inc. (NYSE: FIT), which priced at a third above its original price-range midpoint of $15. The stock popped 48% on its first day of trading and closed out its two-day trading week up 63%. Fitbit raised $732 million in its IPO.
Univar Inc. (NYSE: UNVR), a chemicals distribution company, raised $770 million, the third largest IPO of the year so far. Shares priced at the top end of the expected range ($22) and the company sold 35 million shares, up 15 million from its original plan. The stock popped 15% on Thursday, its first day of trading, and closed Friday up 24%.
Brazilian steakhouse Fogo de Chão Inc. (NASDAQ: FOGO) raised $88 million after pricing at $20, $3 above the midpoint and above the expected range. Shares popped 29% on the first day of trading and closed Friday up 29%.
Solar power MLP 8point3 Energy Partners L.P. (NASDAQ: CAFD) priced at the high end of its expected range ($21 per common unit) but posted a first day drop of 2% and closed Friday down 2%.
IPO ETF manager Renaissance Capital reported that 86 IPOs have priced in the United States so far this year, down about 36% from a year ago. Total proceeds raised through June 19 equaled $15.8 billion, down about 45% compared with the same period in 2014. Of the 86 IPOs that have gone off this year, 38 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.
This week, 15 firms are lined up to price and begin trading, including three companies that have recently failed to complete their offerings.
One of the companies that did not succeed last week was Principal Solar Inc., which acquires, builds, owns and operates profitable, large-scale solar generation facilities. The offering is not an IPO because the company already trades on the OTC Pink market under the symbol PSWW. The company plans to sell 2.5 million shares in a range of $9 to $11. Following a one-for-four reverse stock split on May 6, the shares traded at $15 as of June 5. Sole bookrunner for the offering is Northland Securities. Shares are listed as day-to-day and will trade on the Nasdaq under the existing PSWW ticker symbol.
Yulong Eco-Materials Ltd. is making another attempt at entering the public market. The China-based company makes fly-ash bricks and concrete for China’s construction industry. The firm plans to sell 2.3 million shares in an expected price range of $6.25 to $7.25, raising $15.2 million at a market cap of around $79 million. Joint bookrunners for the offering are Axiom Capital Management, Northland Securities and ViewTrade Securities. The shares are currently scheduled to price and begin trading in the week of June 22 on the Nasdaq under the ticker symbol YECO.
Ritter Pharmaceuticals Inc., the other holdover from last week, develops novel therapeutic products that modulate the human gut microbiome to treat gastrointestinal diseases. The company plans to offer 4 million shares at an IPO price of $5 a share to raise $20 million at a market cap of $39 million. Pricing is well below the prior range, and the share count has more than doubled, but the expected capital raise is approximately the same as last week’s plan. Joint bookrunners for the offering are Aegis Capital and Chardan Capital Markets. Barrington Research is co-manager. The shares are expected to begin trading Wednesday on the Nasdaq under the ticker symbol RTTR.
Catabasis Pharmaceuticals Inc. is a clinical-stage biopharmaceutical company focused on the discovery, development and commercialization of novel therapeutics based on its linker technology platform. The company plans to offer 4.3 million shares in an expected price range of $13 to $15 to raise about $60 million at a market cap of around $194 million. Joint bookrunners for the offering are Citi, Cowen, Oppenheimer and Wedbush PacGrow. Shares are expected to price on Wednesday and begin trading Thursday on the Nasdaq under the ticker symbol CATB.