IPO News This Week: AT&T Spinoff Among 8 IPOs on Tap

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Last week saw two initial public offerings (IPOs), one of which was a tech unicorn that posted a healthy pop over its initial price. The coming week includes eight firms seeking about $2.6 billion in new capital from the public markets.

Last week’s IPOs include Zuora Inc. (NYSE: ZUO), which raised $154 million selling 11 million shares in an upsized offering priced at $14 a share, $3 above the high end of the expected range. The stock closed the week up 47% after a first-day pop of 43%.

Blank-check company Pure Acquisition Corp. (NASDAQ: PACQU) raised $360 million selling 36 million units at $10 per unit.

The scheduled $70 million IPO of Alzheon failed to price.

Through the week ending April 13, IPO ETF manager Renaissance Capital reported that 46 IPOs have priced in the United States so far this year, up about 31% year over year. Total proceeds raised through last week equaled $23 billion, up about 88% 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 eight companies looking to raise new capital in the coming week.

GrafTech International is a vertically integrated maker of graphite electrodes used in steelmaking. The company plans to offer 37.8 million shares in an expected price range of $21 to $24 to raise $850 million at a market cap of $6.8 billion. All shares are being sold by private equity firm Brookfield and none of the proceeds will go to the company. Underwriters are JPMorgan, Credit Suisse, Citigroup, RBC Capital Markets, HSBC, BMO Capital Markets, BNP Paribas, CIBC, National Bank Financial and TD Securities. Shares are expected to price Wednesday and begin trading Thursday on the New York Stock Exchange under the ticker symbol EAF.

Mereo BioPharma is a U.K.-based biotech firm developing rare disease candidates it has acquired from larger firms. The company’s stock currently trades on London’s AIM, and the U.S. IPO will comprise 15.9 million ordinary shares offered as 3.9 million American depositary shares (ADSs) at $17.62 per ADS (each ADS is equal to four ordinary shares) to raise $70 million. Underwriters include Cowen, BMO Capital Markets, RBC Capital Markets, JMP Securities and Cantor Fitzgerald. Shares are expected to price Wednesday and begin trading Thursday on the Nasdaq under the ticker symbol MREO.

MorphoSys is a Germany-based biopharmaceutical company that develops therapies to treat patients suffering from serious diseases. The firm is offering 8.3 million ADSs at $24.12 apiece to raise $200 million. Each ADS is equal to 0.25 of an ordinary share that currently trades on the Frankfurt Stock Exchange. Underwriters are Goldman Sachs, JPMorgan, Leerink Partners, Berenberg Bank and JMP Securities. ADSs are scheduled to price Wednesday and begin trading Thursday on the Nasdaq under the ticker symbol MOR.

Surface Oncology is a clinical-stage immuno-oncology firm developing next-generation cancer therapies. The company plans to offer 6 million shares in an expected price range of $13 to $15 to raise $84 million at a market cap of $405 million. Underwriters are Goldman Sachs, Cowen and Evercore ISI. Shares are expected to price Wednesday and begin trading Thursday on the Nasdaq under the ticker symbol SURF.

Vrio is a Latin American satellite TV service being spun out of AT&T Inc. (NYSE: T). The spin-off plans to offer 29.7 million shares in an expected price range of $19 to $22 to raise $609 million at a market cap of $4.03 billion. Lead bookrunning managers are Goldman Sachs, JPMorgan, Citigroup and Morgan Stanley (see the prospectus for the full list of managers and co-managers). Shares are expected to price Wednesday and begin trading Thursday on the New York Stock Exchange under the ticker symbol VRIO.

FirstCaribbean International Bank is a Barbados-based CIBC-owned bank operating in Barbados, the Bahamas and the Cayman Islands. The bank is planning to offer 9.6 million shares in an expected price range of $22 to $25 to raise $225.6 million at a market cap of $1.24 billion. Underwriters include Barclays, UBS Investment Bank, CIBC, Keefe Bruyette Woods, Raymond James, Sandler O’Neill and Wells Fargo Securities. Shares are expected to price Thursday and begin trading Friday on the New York Stock Exchange under the ticker symbol FCI.

Level One Bancorp is a holding company for a Michigan-based commercial bank. The company plans to offer 1 million shares in an expected price range of $27 to $29 to raise $28 million at a market cap of $206 million. Underwriters are Raymond James, Keefe Bruyette Woods and Piper Jaffray. Shares are expected to price Thursday and begin trading Friday on the Nasdaq under the ticker symbol LEVL.

Pivotal Software is a spin-off of DellEMC that provides a streamlined platform for cloud software development. The firm plans to sell 37 million shares in an expected price range of $14 to $16 to raise $555 million at a market cap of $3.76 billion. Lead bookrunners are Morgan Stanley, Goldman Sachs and Citigroup (see the prospectus for the full list of managers and co-managers). Shares are expected to price Thursday and begin trading Friday on the New York Stock Exchange under the ticker symbol PVTL.