IPO News This Week: 9 Offerings Seeking $3.5 Billion

January 28, 2018 by Paul Ausick

Nine companies completed initial public offerings (IPOs) last week and another nine are on the calendar for this week. If all nine companies successfully price their IPOs at the midpoint of their expected ranges, the combined capital raise would total $3.5 billion.

Last week’s IPOs raised a combined $3.6 billion, above an expected total of around $3.1 billion. Here’s the scorecard:

ARMO BioSciences Inc. (NASDAQ: ARMO) raised $128 million by selling 7.5 million in an upsized offering that priced at $17, above the expected range of $14 to $16. The Friday IPO closed up 75% for the day.

Menlo Therapeutics Inc. (NASDAQ: MNLO) raised $119 million in an upsized offering of 7 million shares priced at $17 each, the high end of the expected range. Shares got a first-day pop of 69% and closed the week up 68%.

Solid Biosciences LLC (NASDAQ: SLDB) raised $125 million in an upsized offering of 7.8 million shares priced at $16, below the expected range of $18 to $19. Shares got a first-day pop of 41% on the Friday IPO.

PagSeguro Digital Ltd. (NYSE: PAGS) raised $2.27 billion on an upsized offering of 105.4 million shares priced at $21.50, above the expected range of $17.50 to $20.50. The first-day pop was 36% on the Friday IPO.

PlayAGS Inc. (NYSE: AGS) raised $164 million by selling 10.3 million shares at $16 each, the low end of the range. Shares got a first-day pop of 16% on the Friday IPO.

resTORbio Inc. (NASDAQ: TORC) raised $85 million by selling 5.7 million shares at $15, the midpoint of the expected range. Shares got a first-day pop of 13% on the Friday IPO.

Gordon Pointe Acquisition Corp. (NASDAQ: GPAQU), a blank-check company, raised $125 million by selling 12.5 million units at $10 per unit.

Eyenovia Inc. (NASDAQ: EYEN) raised $27 million by selling 2.7 million shares at $10, the low end of the expected range. Shares dipped 1% on the Friday IPO.

Gates Industrial Corp. PLC (NYSE: GTES) raised $732 million by selling 38.5 million shares at $19, just below the midpoint of the expected range. Shares dropped 3% on the first day of trading and closed the week down 1%.

Through the week ending January 26, IPO ETF manager Renaissance Capital reported that 13 IPOs have priced in the U.S. so far this year, up 87.5% year over year. Total proceeds raised through last week equaled $6.7 billion, up 218% year over year.

For 2017, Renaissance Capital reported a total of 160 IPOs, up 52% year over year from 105 in 2016. Total 2017 proceeds amounted to $35.5 billion compared with a 2016 total of $18.8 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.

These are the nine IPOs expected to price in the coming week:

MTech Acquisition is a blank-check company formed to acquire a cannabis services business. The firm plans to offer 5 million units at $10 per unit to raise $50 million at a market cap of $648 million. Each unit comprises one share of class A common stock and one warrant. Sole underwriter for the offering is EarlyBirdCapital. Units are expected to begin trading Tuesday on the Nasdaq under the ticker symbol MTECU.

One Stop Systems makes high-performance computer systems to meet high-speed processing needs in fields such as AI and machine learning. The company plans to offer 2.9 million shares in an expected price range of $6 to $8 to raise $20 million at a market cap of about $80 million. Underwriters are Roth Capital and The Benchmark Company. Shares are expected to price Tuesday and begin trading Wednesday on the Nasdaq under the ticker symbol OSS.

Corporación América Airports is a Luxembourg-based airport concessions operator. The company plans to offer 28.6 million shares in an expected price range of $19 to $23 to raise $600 million at a market cap of $3.36 billion. Underwriters include Oppenheimer, Merrill Lynch, Citi, Goldman Sachs and Santander. Shares are expected to price Wednesday and begin trading Thursday on the New York Stock Exchange under the ticker symbol CAAP.

Hudson is a U.K.-based operator of airport concessions. The company plans to offer 39.4 million shares in an expected price range of $19 to $21 to raise $788 million at a market cap of $1.85 billion. Underwriters include Credit Suisse, Morgan Stanley, UBS Investment Bank, Merrill Lynch, Goldman Sachs, Santander, BBVA, BNP Paribas, Credit Agricole CIB, HSBC, Natixis, Raiffeisen Bank and UniCredit Capital Markets. Shares are set to price Wednesday and begin trading Thursday on the New York Stock Exchange under the ticker symbol HUD.

Sol-Gel Technologies is an Israel-based clinical-stage dermatology company developing topical acne creams. The company plans to offer 5 million shares in an expected price range of $11 to $13 to raise $60 million at a market cap of about $201 million. Underwriters include Jefferies, BMO Capital Markets, JMP Securities and Raymond James. Shares are expected to price Wednesday and begin trading Thursday on the Nasdaq under the ticker symbol SLGL

VICI Properties is a REIT that was spun-out of Ceasars Entertainment that leases properties to its former owner. The company plans to offer 50 million shares in an expected price range of $19 to $21 to raise $1 billion at a market cap of $7 billion. Underwriters include Morgan Stanley, Goldman Sachs, Merrill Lynch, Barclays, Citi, Deutsche Bank, Credit Suisse, UBS Investment Bank, Stifel, Citizens, Wells Fargo Securities and Union Gaming. Shares are set to price Wednesday and begin trading Thursday on the New York Stock Exchange under the ticker symbol VICI.

Central Puerto is an Argentina-based private sector power producer. The company plans to offer 35.5 million shares in an expected price range of $17.50 to $21.50 to raise $692 million at a market cap of $3 billion. Underwriters are Merrill Lynch, JPMorgan and Morgan Stanley. Shares are scheduled to price Thursday and begin trading Friday on the New York Stock Exchange under the ticker symbol CEPU.

FTS International provides hydraulic fracturing (fracking) services in North America. The company plans to offer 15.2 million shares in an expected price range of $15 to $18 to raise $250 million at a market cap of $1.76 billion. Underwriters include Credit Suisse, Morgan Stanley, Wells Fargo Securities, Barclays, Citi, Evercore ISI, Guggenheim Securities, Simmons, Tudor Pickering Holt and Cowen. Shares are set to price Thursday and begin trading Friday on the New York Stock Exchange under the ticker symbol FTSI.

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