First IPO of 2017 Due to Launch This Week

The first initial public offering (IPO) of 2017 is on this week’s calendar. It may come as no big surprise that it is an offering from a firm in the energy business. A larger and more anticipated tech IPO is due the following week with tech unicorn AppDynamics set to price on January 25.

There was an IPO of sorts last week when Gores Holdings II raised $375 million with an offer of 37.5 million units at $10 per unit. The shares are listed on the Nasdaq under the ticker symbol GSHTU. Gores Holdings I acquired Hostess Brands last year and completed an IPO in December for Hostess Brands Inc. (NASDAQ: TWNK).

For 2016, IPO ETF manager Renaissance Capital reported a total of 105 IPOs, down 38% year over year from 170 in 2015. Total 2016 proceeds amounted to $18.8 billion compared with a 2015 total of $30 billion. Renaissance Capital does not include “best efforts” or blank-check companies in its totals, nor does it include IPOs that raise less than $10 million.

Keane Group Inc. is an oil and gas well completion services firm. The company plans to offer 16.7 million shares in an initial price range of $17 to $19 to raise about $301 million at an implied market cap of $1.85 billion. Joint bookrunners for the offering are Citi, Morgan Stanley, BofA/Merrill Lynch, and J.P. Morgan. Co-managers include Wells Fargo Securities, Simmons & Co., Houlihan Lokey, Guggenheim Securities, Scotiabank/Howard Weil, and Stephens Inc. Shares are expected to price Thursday and begin trading Friday on the New York Stock Exchange under the ticker symbol FRAC.

AppDynamics has filed preliminary documents to raise up to $100 million. Joint bookrunners for the offering are Morgan Stanley, Goldman Sachs, J.P. Morgan, Barclays, UBS Investment Bank, Wells Fargo Securities, William Blair, and JMP Securities. The stock has applied to trade on the Nasdaq under the ticker symbol APPD.