IPO Market Heats Up With 8 Launches Scheduled This Week

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The first initial public offering (IPO) of 2017 went off last Friday when oil and gas well completion services firm Kean Group Inc. (NYSE: FRAC) launched an upsized offering of 26.8 million shares at $19 per share — the high end of its expected price range — to raise $508 million. The stock popped 14% on its first day.

In the coming week, another eight firms plan to launch IPOs, including four biotechs, two manufacturing companies, one tech firm, and one energy firm.

Through the week ending January 20, IPO ETF manager Renaissance Capital reported that 1 IPO has priced in the U.S. so far this year, compared with none a year ago. Total proceeds raised through last week equaled $0.5 billion. Remember that markets absolutely tanked in the first six weeks of so of 2016.

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.

Here’s a look at the eight companies scheduled to test the market this week:

AnaptysBio Inc. is a biotech firm developing antibody products focused on unmet medical needs in inflammation and immuno-oncology. The firm plans to offer 4 million shares in an expected price range of $14 to $15 to raise $60 million at an implied market cap of $272 million. Joint bookrunners for the offering are Credit Suisse and Stifel. 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 ANAB.

AppDynamics Inc. is a software firm that provides application performance management tools for large-scale enterprises. The company plans to offer 12 million shares in an expected price range of $10 to $12 to raise $132 million at an implied market cap of $1.38 billion. Joint bookrunners for the offering are Morgan Stanley, Goldman Sachs, J.P. Morgan, Barclays, UBS Investment Bank, and Wells Fargo Securities. Co-managers are William Blair, and JMP Securities. Shares are expected to price Wednesday and begin trading Thursday on the Nasdaq under the ticker symbol APPD.

ObsEva SA is a Switzerland-based clinical stage biopharmaceutical maker developing novel therapeutics for serious conditions that compromise a woman’s reproductive health and pregnancy. The company plans to offer 6.5 million shares in an expected price range of $14 to $16, raising $97 million at an implied market cap of $445 million. Joint bookrunners for the offering are Credit Suisse, Jefferies, and Leerink Partners. Shares are expected to price Thursday and begin trading Friday on the Nasdaq under the ticker symbol OBSV.

Jagged Peak Energy Inc. is an independent oil & gas producer with assets in the Permian Basin of west Texas. The company plans to offer 38.2 million shares in an expected price range of $16 to $18 to raise about $650 million at an implied market cap of $2.53 billion. Joint bookrunners for the offering are Citi, Credit Suisse, J.P. Morgan, Goldman Sachs, RBC Capital Markets, and Wells Fargo Securities. Co-managers include UBS Investment Bank, KeyBanc Capital Markets, ABN AMRO, Fifth Third Securities, Petrie, Parkman & Co., Tudor, Pickering, Holt & Co., BMO Capital Markets, Deutsche Bank, Evercore ISI, and Scotiabank/Howard Weil. Shares are expected to price Thursday and begin trading Friday on the New York Stock Exchange under the ticker symbol JAG.

JELD-WEN Holding Inc. is among the world’s largest manufacturers of doors and windows. The company plans to offer 25 million shares in an expected price range of $16 to $18 to raise $550 million at an implied market cap of $2.31 billion. Joint bookrunners for the offering are Barclays, Citi, Credit Suisse, J.P. Morgan, Deutsche Bank, RBC Capital Markets, BofA/Merrill Lynch, Goldman Sachs, and Wells Fargo Securities. Co-managers are Baird, FBR Capital Markets, and SunTrust Robinson Humphrey. Shares are expected to price Thursday and begin trading Friday on the New York Stock Exchange under the ticker symbol JELD.

Jounce Therapeutics Inc. is a clinical stage immunotherapy company working on cancer treatment therapies. The company plans to offer 5.4 million shares in an expected price range of $13 to $15 to raise $75 million at an implied market cap of $422 million. Joint bookrunners for the offering are J.P. Morgan and Cowen & Co. Co-managers are Wells Fargo Securities and Baird. Shares are expected to price Thursday and begin trading Friday on the Nasdaq under the ticker symbol JNCE.

REV Group Inc. manufactures specialty vehicles such as ambulances, fire trucks, school buses, other industrial and commercial vehicles, and consumer leisure vehicles such as RVs. The company plans to offer 12.5 million shares in an expected price range of $19 to $21 to raise $250 million at an implied market cap of $1.27 billion. Joint bookrunners for the offering are Goldman Sachs, Morgan Stanley, and Baird. Co-managers include BMO Capital Markets, Credit Suisse, Deutsche Bank, Jefferies, Wells Fargo Securities, and Stifel. Shares are expected to price Thursday and begin trading Friday on the New York Stock Exchange under the ticker symbol REVG.

Visterra Inc. is a clinical-stage biopharmaceutical company applying its proprietary platform to identify unique disease targets and then design and engineer innovative antibody-based therapies that are intended to be effective as a single-dose administration. The company plans to offer 3.9 million shares in an expected price range of $12 to $14 to raise $50 million at an implied market cap of $212 million. Joint bookrunners for the offering are Leerink Partners and Stifel. Co-managers are Needham & Co., and Wedbush PacGrow. Shares are expected to price Thursday and begin trading Friday on the Nasdaq under the ticker symbol VIST.

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