IPOs This Week: Kinder Morgan Canada Tops the Short Week’s Short List

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Three initial public offerings (IPOs) on last week’s calendar made it out the door and one returns for another try in the coming week. The Canadian listing of a piece of a U.S. energy pipeline and infrastructure giant is next week’s big news, however.

Among last week’s IPOs, Appian Corp. (NASDAQ: APPN) sold 6.3 million shares at $12 (the midpoint of the expected range) and raised $75 million at a market cap of $755 million. Shares got a first-day pop of 25% and closed the week up 43%.

SMART Global Holdings Inc. (NASDAQ: SGH) price 5.3 million shares at $11, well below the expected range of $13 to $15, and raised $58 million at a market cap of $237 million. Shares jumped 22% on the first day of trading and closed the week up 20%.

WideOpenWest Inc. (NYSE: WOW) sold 18.2 million shares (below its expected size) at $17, well below the expected range of $20 to $22 and raised $310 million at a market cap of $1.45 billion. Shares dropped 3% on the first day of trading but closed the week up 3%.

Through the week ending May 26, IPO ETF manager Renaissance Capital reported that 62 IPOs have priced in the U.S. so far this year, up about 100% year over year. Total proceeds raised through last week equaled $17.2 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.

Returning this week is KBL Merger Corp. IV, a blank-check company that plans to focus on acquiring an operating company in the healthcare sector. The firm plans to offer 10 million units comprised of one share of common stock and one warrant at an IPO price of $10 per unit. Underwriters are Ladenburg Thalmann & Co., B. Riley & Co., and FBR Capital Markets. Units are listed only as “week of” and will trade on the Nasdaq under the ticker symbol KBLMU.

While we don’t usually cover non-U.S. IPOs, we’re making an exception this week. Kinder Morgan Inc. (NYSE: KMI) has filed to documents to sell 102.94 million shares (about a 30% stake) in Kinder Morgan Canada Ltd. The Canadian firm will include the Trans Mountain pipeline system that the company has now received approval to expand from 300,000 to 890,000 barrels a day of transportation from western Alberta’s oil sands region to the coast of British Columbia. At C$17 per share, the company expects gross proceeds of C$1.75 billion which it plans to use to pay construction costs on the Trans Mountain system. Shares are expected to begin trading by May 31 on the Toronto Stock Exchange under the ticker symbol KML. A more detailed look is included in our Friday report on the IPO.