Three healthcare initial public offerings (IPOs) were launched last week and there are two new companies are in the pipeline for the coming week. Last week’s offerings added a total of about $150 million to the year-to-date total of funds raised.
The largest of last week’s IPOs was NantHealth LLC (NASDAQ: NH), a healthcare IT company, that raised $91 million. The stock popped 33% on its first day of trading and closed Friday up 32% above the IPO price.
Clearside Biomedical Inc. (NASDAQ: CLSD) raised $50 million in an upsized offering of 7.2 million shares at $7 per share, far below the expected range of $14 to $16 per share. Share popped 4% on the first day of trading and closed the week up 1%.
The week’s third IPO was Sensus Healthcare Inc. (NASDAQ: SRTSU) also upsized its offer and cut its IPO price, issuing 2 million units at $5.50. Units popped 17% on the first day of trading and that’s where they closed the week.
Through the week ending May 27th, IPO ETF manager Renaissance Capital reported that 34 IPOs have priced in the U.S. so far this year, down about 53% from a year ago. Total proceeds raised through last week equaled $5.5 billion, down nearly 58% compared with the same period in 2015. Of the 33 IPOs that have gone off this year, 20 have come from the healthcare sector. Last year’s IPO total came in at $30 billion on 170 offerings. Renaissance Capital does not include “best efforts” or blank-check companies in its totals.
The first of the coming week’s two new IPOs is Atkore International Group Inc., a maker of electrical raceway products primarily for the non-residential and renovation markets. The company plans to offer 12 million shares in an expected price range of $20 to $22 to raise $252 million at an implied market cap of $1.31 billion. Joint bookrunners for the offering are Credit Suisse, Deutsche Bank, J.P. Morgan, UBS Investment Bank, Citi, RBC Capital Markets, and Wells Fargo Securities. Shares are expected to price Thursday and begin trading Friday on the New York Stock Exchange under the ticker symbol ATKR.
Beijing-based China Online Education Group (known as 51Talk) offers English-language education programs in China. The company plans to offer 2.4 million American Depositary Shares (ADS) in an IPO price range of $18 to $20 to raise $45.6 million at an implied market cap of $374 million. Each ADS represents 15 class A ordinary shares. Joint bookrunners for the offering are Morgan Stanley and Credit Suisse. Shares are expected to price Thursday and begin trading Friday on the New York Stock Exchange under the ticker symbol COE.
Continuing to be listed as day-to day is Cancer Prevention Pharmaceuticals Inc., a clinical-stage biopharmaceutical company developing and commercializing therapeutic agents to treat and prevent certain pre-cancerous conditions, orphan diseases, and gastrointestinal conditions. The company downsized it offering from 1.9 million shares to 1.25 million in an expected price range of $12 to $14 to raise $16.3 million at an implied market cap of $87.9 million. Sole bookrunner for the offering is Aegis Capital Corp. Shares are expected to trade on the New York Stock Exchange under the ticker symbol CPP.