The first blockbuster initial public offering (IPO) of 2016 finally arrived last week when tech unicorn Twilio Inc. (NYSE: TWLO) not only priced above its expected range, but posted a 92% first-day pop. Twilio also became the year’s first venture-backed IPO to launch successfully this year.
Twilio sold 10 million shares at $15 per share, raising $150 million at a market cap of about  $1.4 billion. The company’s largest customer is Facebook Inc.’s (NASDAQ: FB) WhatsApp which accounted for 15% of Twilio’s revenues in the most recent quarter.
Only one of three other IPOs on last week’s calendar made it out the door. Selecta Biosciences Inc. (NASDAQ: SELB) raised $70 million, but priced at the low end ($14) of its expected range and closed the week at its IPO price. The other two are listed as day-to-day for the coming week along with 4 first-timers and one stock moving from the over-the-counter market.
Through the week ending June 24, IPO ETF manager Renaissance Capital reported that 40 IPOs have priced in the U.S. so far this year, down nearly 60% from a year ago. Total proceeds raised through last week equaled $6 billion, down more than 66% compared with the same period in 2015. Of the 40 IPOs that have gone off this year, 22 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.
Here are the coming week’s offerings.
Global Medical REIT Inc. is a real-estate investment trust that acquires and leases healthcare facilities. The company plans to offer 9.1 million shares in an expected price range of $10 to $12 to raise about $100 million at an implied market cap of $132.7 million. Joint bookrunners for the offering are Wunderlich Securities and Oppenheimer & Co. Co-managers are BB&T Capital Markets, Compass Point, and D.A. Davidson. Shares are set to price Tuesday and begin trading Wednesday on the New York Stock Exchange under the ticker symbol GMR.
Syros Pharmaceuticals Inc. is a biopharmaceutical company developing small-molecule genetic therapies targeting leukemia. The company plans to offer 4 million shares in an expected price range of $14 to $16 to raise $60 million at an implied market cap of around $500 million. Joint bookrunners for the offering are Cowen & Co. and Piper Jaffray. Co-managers are JMP Securities and Wedbush PacGrow. Shares are expected to price Wednesday and begin trading Thursday on the Nasdaq under the ticker symbol SYRS.
AgEagle Aerial Systems Inc. designs and manufactures small unmanned aerial vehicles (UAVs or, more commonly, drones) for the agricultural industry. The firm plans to offer 2.7 million shares in an expected price range of $5 to $6 to raise $15 million at an implied market cap of $23.1 million. Joint bookrunners for the offering are Northland Securities and Roth Capital. Shares are expected to price and begin trading in the week of June 27 on the Nasdaq under the ticker symbol UAVS.
Monster Digital Inc. designs develops, and markets premium products under the “Monster Digital” brand for use in high-performance consumer electronics, mobile products and computing applications. The company plans to offer 2.5 million shares of common stock and five-year warrants to purchase 2.5 million shares of common stock in an expected price range of $4.50 to $5.00, to raise about $12 million at an implied market cap of $36.3 million. Immediately after the offering, shares and warrants will trade separately. Sole bookrunner for the offering is Axiom Capital Management and sole co-manager is WestPark Capital. The offering is expected to price Monday and shares will begin trading Tuesday on the Nasdaq under the ticker symbol MSDI. Warrants will also trade on the Nasdaq under the ticker symbol MSDIW.
Long Island Iced Tea Corp. is a holding company that produces and distributes non-alcoholic iced tea beverages. The company, which already trades over the counter, plans to offer 1.54 million shares which closed trading on Friday at $7.45. The company expects to raise about $8.6 million against a current market cap of $37 million. Joint bookrunners for the offering are Network 1 Financial Securities and Axiom Capital Management. The offering is listed as day to day and shares will trade on the Nasdaq under the existing OTC ticker symbol LTEA.
Returning for another try this week is Tactile Systems Technology Inc., Â a medical technology company that develops and provides medical devices to treat chronic diseases at home. The company plans to offer 4 million shares in an expected price range of $14 to $16 to raise $60 million at an implied market cap of $236.3 million. Joint bookrunners for the offering are Piper Jaffray, William Blair, and Canaccord Genuity. Co-manager is BTIG. Shares are listed as day-to-day and will trade on the Nasdaq under the ticker symbol TCMD.
Another returning hopeful is Gemphire Therapeutics Inc., a clinical-stage biopharmaceutical firm developing therapies to treat dyslipidemia, a serious medical condition that increases the risk of life-threatening cardiovascular disease. The company plans to offer 3.8 million shares in an expected price range of $11 to $13 to raise $45 million at an implied market cap of $110.2 million. Joint bookrunners are Jefferies and RBC Capital Markets. Co-managers are Canaccord Genuity and Roth Capital. Shares are listed as day-to-day and will trade on the Nasdaq under the ticker symbol GEMP.
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.
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