IPOs This Week: Offerings Winding Down in Dog Days of August

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Of four initial public offerings (IPOs) on last week’s calendar, one withdrew its planned offering and two reached the public market. In all, the capital raise totaled $203 million. The coming week’s calendar lists just one IPO and there are no IPOs currently scheduled for the next four weeks.

Contura Energy Inc., which was formed out of the restructuring of bankrupt Alpha Natural Resources, was on the calendar for Thursday. The company officially withdrew its planned IPO in a filing with the U.S. Securities and Exchange Commission.

Last Tuesday, Zealand Pharma A/S (NASDAQ: ZEAL) raised $78 million in an upsized offering of 4.4 million shares but at a reduced price of $17.87 per share. The Copenhagen-based firm traded down slightly on its first day and closed the week up 0.2%.

Yoga studio operator YogaWorks Inc. (NASDAQ: YOGA) entered the market after postponing a planned offering in July. The company sold 7.3 million shares (up from a planned 5 million) at $5.50, the low end of its downwardly revised range (originally $12 to $14) to raise $40 million. Shares tumbled 11.8% on Friday, the stock’s first day of trading.

Ranger Energy Services Inc. (NYSE: RNGR) sold 5.9 million shares in an upsized offering that priced at $14.50 per share, about 15% below the midpoint of the expected range. The Friday offering closed the day down about 2%.

Through the week ending August 11, IPO ETF manager Renaissance Capital reported that 91 IPOs have priced in the U.S. so far this year, up more than 54% year over year. Total proceeds raised through last week equaled $22.2 billion, up 136% year over year. 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.

The coming week’s sole offering is Capitol Investment Group IV, a blank-check company seeking to raise $350 million by selling 35 million units at $10 per share.  Each unit consists of one Class A ordinary share and one-third of one redeemable warrant. Each whole warrant entitles the holder thereof to purchase one Class A ordinary share at a price of $11.50 per share, subject to certain conditions. Underwriters are Citi, Deutsche Bank, and J.P. Morgan. Units will trade on the New York Stock Exchange under the ticker symbol CIC.U. Class A ordinary shares and warrants will be listed on the NYSE under the symbols CIC and CIC WS, respectively.