Three firms completed initial public offerings (IPOs) last week. One was an uplisted offering from Kura Oncology Inc. (NASDAQ: KURA) from the OTCQB venture marketplace. Another was First Guaranty Bancshares Inc. (NASDAQ: FGBI), which both downsized the number of shares to be sold and lowered the IPO price. And Fuling Global Inc. (NASDAQ: FORK), a China-based maker of plastic cutlery, had to settle for a “best-efforts” IPO. Paris-based GenSight Biologics postponed its IPO.
Through the week ending November 6, IPO ETF manager Renaissance Capital reported that 156 IPOs have priced in the United States so far this year, down nearly 36% from a year ago. Total proceeds raised through last week equaled $28.2 billion, down about 63% compared with the same period in 2014. Of the 156 IPOs that have gone off this year, 73 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.
Two holdovers and seven new entries are on the coming week’s calendar, including four biotechs and two financial companies.
One firm returning for another try next week is Xtera Communications, a developer of high-capacity optical transport products. The company plans to offer 5.5 million shares in an IPO price range of $9 to $11 to raise $55 million at an implied market cap of $176 million. Joint bookrunners for the offering are Needham, Cowen and BMO Capital Markets. Shares are expected to price and begin trading next week on the Nasdaq under the ticker symbol XCOM.
The other holdover is Sole Elite Group, a China-based maker of shoe soles used in the manufacture of sports shoes. The company has slashed the number of shares it plans to offer and added a warrant to each share that is exercisable at 120% of the IPO price. The firm also lowered its expected price range to $5.50 to $7.00. Joint bookrunners for the offering are Dawson James and ViewTrade. The shares are shown as day-to-day and will trade on the Nasdaq under the ticker symbol SOLE.