There was one initial public offering (IPO) last week, and the IPO market perks up in the week ahead with four more on the calendar.
Last week’s sole IPO came from BioXcel Therapeutics Inc. (NASDAQ: BTAI), which raised $60 million selling 5.5 million shares (upsized from 5 million) at $11 per share, the bottom of the expected range.
The sole IPO last week came from blank-check firm Union Acquisition Corp. (NYSE: LTN.U) which raised $100 million selling 10 million units at $10 apiece. Shares closed flat for the week.
One other big event next week is Thursday’s investor day show from streaming music firm Spotify. The much-anticipated direct offering is getting closer.
Through the week ending March 9, IPO ETF manager Renaissance Capital reported that 29 IPOs have priced in the United States so far this year, up about 53% year over year. Total proceeds raised through last week equaled $10.9 billion, up 28% 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.
Here are the four IPOs on the coming week’s calendar.
Opes Acquisition is a blank-check company based in Mexico City that is seeking to acquire a Mexican business. The company plans to offer 10 million units at $10 per unit to raise $100 million at a market cap of $129 million. Underwriters are EarlyBirdCapital, Chardan Capital Markets, and I-Bankers Securities. Units are expected to begin trading Tuesday on the Nasdaq under the ticker symbol OPESU.
Arcus Biosciences is a clinical-stage biotechnology firm developing immunotherapies to treat cancer. The company plans to offer 7.1 million shares in an expected price range of $13 to $15 to raise $99 million at a market cap of $583 million. Underwriters are Citi, Goldman Sachs, and Leerink Partners. Shares are scheduled to price Wednesday and begin trading Thursday on the New York Stock Exchange under the ticker symbol RCUS.
Zscaler offers a cloud-based enterprise network security system. The company plans to offer 10 million shares in an expected price range of $10 to $12 to raise $110 million at a market cap of $1.27 billion. Underwriters include Morgan Stanley, Goldman Sachs, BofA/Merrill Lynch, Barclays, Deutsche Bank, Credit Suisse, UBS Investment Bank, Baird, BTIG, Needham & Co., and Stephens Inc. Shares are expected to price Thursday and begin trading Friday on the Nasdaq under the ticker symbol ZS.
Bridgewater Bancshares is a Minnesota-based community bank focused on commercial real estate lending. The company plans to offer 6.7 million shares in an expected price range of $10.50 to $12.50 to raise $77 million at a market cap of $334 million. Underwriters are Sandler O’Neill and D.A. Davidson. Shares are listed only as “week of” and will trade on the Nasdaq under the ticker symbol BWB.