IPOs This Week: Select Energy Services in the Spotlight

April 16, 2017 by Paul Ausick

The second week of April saw six initial public offerings (IPOs) raise about $1.2 billion. The first two weeks of the second quarter have accounted for more than $2.2 billion in capital raises, the best two-week period so far this year.

Last week’s largest IPO was Brazilian airline Azul SA (NYSE: AZUL) which raised $573 million at a market cap of $2.28 billion. The airline got a first-day pop of 7% and closed the week up 9%.

Yext Inc. (NYSE: YEXT) raised $116 million at a market cap of $1.11 billion. The stock got a first day pop of 22% in Thursday’s IPO.

Warrior Met Coal LLC (NYSE: HCC) raised $317 million at a market cap of $1.1 billion. Shares dipped 5% in the Thursday IPO.

Netshoes (Cayman) Ltd. (NYSE: NETS) raised $149 million at a market cap of $559. Shares dropped 11% on the first day of trading and closed the week down 19%.

Cadence Bancorporation (NYSE: CADE) raised $150 million at a market cap of $1.66 billion. Shares rose 8% after Thursday’s IPO.

Tocagen Inc. (NASDAQ: TOCA) raised $85 million at a market cap of $184 million. Shares jumped 25% on Thursday’s IPO.

Through the week ending April 7, IPO ETF manager Renaissance Capital reported that 35 IPOs have priced in the U.S. so far this year, up 250% year over year. Total proceeds raised through last week equaled $12.3 billion. For 2016, 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.

There is just one IPO on the calendar for the week of April 17.

Select Energy Services Inc. provides water solutions to the U.S. unconventional (shale) oil & gas industry. The company plans to offer 10.6 million shares in an expected price range of $15 to $18 to raise about $175 million at an implied market cap of $900 million. Underwriters for the offering include Credit Suisse, FBR Capital Markets, Wells Fargo Securities, BofA/Merrill Lynch, Citi, J.P. Morgan, Deutsche Bank, Simmons & Co., and RBC Capital Markets. Shares are expected to price Thursday and begin trading Friday on the New York Stock Exchange under the ticker symbol WTTR.

Take This Retirement Quiz To Get Matched With An Advisor Now (Sponsored)

Are you ready for retirement? Planning for retirement can be overwhelming, that’s why it could be a good idea to speak to a fiduciary financial advisor about your goals today.

Start by taking this retirement quiz right here from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes. Smart Asset is now matching over 50,000 people a month.

Click here now to get started.