Investing

IPO Calendar Swells to 11 for Week of October 12

IPO
Source: Thinkstock
Of 10 initial public offerings (IPOs) on last week’s calendar, just five succeeded in reaching the public markets. Of that number, four priced below their expected ranges. The moral of that story is that investors in IPOs are bargain hunting, and that may be why the largest IPO on last week’s calendar — and one of the largest of the year to date — was withdrawn.

Digicel Group, a provider of mobile communications services, business solutions, cable TV and broadband and related services in the Caribbean and South Pacific regions, will not proceed with its IPO now. The company’s chairman said last week, “Recent volatility in equity markets has seen a number of IPOs listing at a discount to their signalled price range and this was a less attractive route for us.” The company had filed to raise approximately $1.8 billion.

Of the four IPOs that priced below their expected ranges, CPI Card Group Inc. (NASDAQ: PMTS) priced furthest below its midpoint (-41%), but also enjoyed the best first-day pop, closing up 22%. Aclaris Therapeutics Inc. (NASDAQ: ACRS) priced 27% below its expected midpoint but managed to add 14% by the end of the week. Allegiance Bancshares Inc. (NASDAQ: ABTX) and CytomX Therapeutics Inc. (NASDAQ: CTMX) also priced below their expected ranges, but posted single-digit percentage gains by Friday.

Only Pure Storage Inc. (NYSE: PSTG) priced at the midpoint of its range and finished its first week of trading down 2%. The stock dropped 6% on its first day of trading.

Through the week ending October 2nd, IPO ETF manager Renaissance Capital reported that 144 IPOs have priced in the United States so far this year, down about 35% from a year ago. Total proceeds raised through last week equaled $24.2 billion, down 66% compared with the same period in 2014. Of the 144 IPOs that have gone off this year, 67 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.

Five delayed IPOs are on the calendar for the coming week, along with six first-timers.

One postponed offering from last week, Fuling Global, is a Cayman Islands-based specialized production and distribution company for environmentally friendly plastic serviceware with manufacturing plants in China and the U.S. The company plans to offer 5 million shares at an IPO price range of $5 to raise $25 million at an implied market cap of about $83 million. Sole bookrunner for the offering is Burnham Securities. Shares are now expected to price in the week of October 12th and begin trading on the Nasdaq under the ticker symbol FORK. The IPO is listed as a “best efforts” deal.