Last week may not have been the best time for companies to launch an initial public offering (IPO). The equities market took a pounding and just 6 of 10 companies were able to launch, raising $992 million out of a planned $1.8 billion total. A total of four firms have scheduled IPOs for the coming week seeking to raise about $490 million in new capital.
Here’s how last week’s IPOs fared:
Cactus Inc. (NYSE: WHD) raised $437 million in an upsized offering of 23 million shares priced at $19, the top of the expected range. The stock closed the week up 7% after its Friday IPO.
Huami Corp. (NYSE: HMI) raised $110 million selling 10 million shares at $11, the midpoint of the expected range. The stock got a first-day pop of 2% and closed the week up 3%.
Cardlytics Inc. (NASDAQ: CDLX) raised $70 million selling 5.4 million shares at $13, the low end of the expected range. Shares got a 3% pop on the Friday IPO.
Evolus Inc. (NASDAQ: EOLS) raised $60 million selling 5 million shares at $12, the low end of the expected range. Shares dipped 4% after the first day of trading and closed the week down 3%.
Victory Capital Holdings Inc. (NASDAQ: VCTR) raised $152 million selling 11.7 million shares at $13, well below the expected range of $17 to $19. Shares lost 11% on the first trading day and closed the week down 5%.
Quintana Energy Services Inc. (NYSE: QES) raised $93 million selling 9.3 million shares at $10, well below the expected range of $12 to $15. Shares dropped 10% on the Friday IPO.
Three firms postponed their scheduled IPOs: Bioceres, TFI Tab Food Investments and Ipsco Tubulars.
Through the week ending February 9, IPO ETF manager Renaissance Capital reported that 26 IPOs have priced in the U.S. so far this year, up about 86% year over year. Total proceeds raised through last week equaled $10.8 billion, up 137% 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 four IPOs expected to price in the coming week:
Leo Holdings Corp. is a London-based blank-check company formed to acquire a consumer business. The company plans to offer 20 million units at $10 per unit to raise $200 million at a market cap of $250 million. The sole underwriter is Citi. Units are listed only as “week of” and will trade on the New York Stock Exchange under the ticker symbol LHC.U.
Returning this week is Motus GI Holdings Inc., an Israel-based medical device maker developing a product to assist with intraprocedural colonoscopy cleansing. The company plans to offer 4.3 million shares in an expected price range of $5 to $7 to raise $25.5 million at a market cap of $98 million. The range was dropped from a prior range $6 to $8. Underwriters are Piper Jaffray and Oppenheimer & Co. Shares are listed only as “week of” and will trade on the Nasdaq under the ticker symbol MOTS.
Biofrontera AG is a German firm that sells treatments for skin conditions caused by sun damage. The firm currently trades on the Frankfurt Exchange and plans to offer 1.2 million shares in an expected price range of $11 to $13 to raise $15 million. Underwriters are The Benchmark Company, Dawson James, and Lake Street Capital Markets. Shares are expected to price Tuesday and begin trading Wednesday on the Nasdaq under the ticker symbol BFRA.
DFB Healthcare Acquisitions Corp. is a blank-check company formed to acquire and build a healthcare business. The company plans to offer 25 million units at $10 each to raise $250 million at a market cap of $312.5 million. Underwriters are Goldman Sachs, Deutsche Bank Securities, and Leerink Partners. Units are set to price Thursday and begin trading Friday on the Nasdaq under the ticker symbol DFBHU.