Investing

IPO News This Week: DocuSign Tops List of 6 Scheduled Offerings

Paul Ausick

Published: April 22, 2018 9:42 am

Last Updated: January 12, 2020 12:40 am

Last week’s initial public offering (IPO) calendar included eight firms looking to enter the public markets. Only five succeeded. The coming week includes six firms seeking about $1.3 billion in new capital from the public markets.

GrafTech International Ltd. (NYSE: EAF) raised $525 million by selling 35 million shares in a down-sized offering at $15 a share, far below the expected range of $21 to $24. Shares got a first-day pop of 5% and closed the week up 5%.

MorphoSys AG (NASDAQ: MOR) raised $208 million selling 8.3 million American Depositary Shares (ADS) at $25.04 per ADS. Shares got a first-day pop of 5% and closed the week up 3%.

Surface Oncology Inc. (NASDAQ: SURF) raised $108 million by selling 7.2 million shares in an upsized offering at $15, the high end of the range. Shares dropped 11% on their first trading day and closed the week down 8%.

Level One Bancorp Inc. (NASDAQ: LEVL) raised $34 million by selling 1.2 million shares in an upsized offering at $28, the midpoint of the expected range. Shares gained 5% on the Friday IPO.

Pivotal Software Inc. (NYSE: PVTL) raised $555 million by selling 37 million shares at $28, the midpoint of the expected range. The stock got a 5% pop on the Friday IPO

Through the week ending April 20, IPO ETF manager Renaissance Capital reported that 51 IPOs have priced in the U.S. so far this year, up about 42% year over year. Total proceeds raised through last week equaled $24.5 billion, up about 97% 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 six companies looking to raise new capital in the coming week.

Ceridian HCM Holding Inc. is a global provider of human capital management (HCM) software. The company plans to offer 21 million shares in an expected price range of $19 to $21 to raise $420 million at a market cap of $2.7 billion. Underwriters are Goldman Sachs, J.P. Morgan, Credit Suisse, Deutsche Bank, Barclays, Citi, Jefferies, CIBC, Wells Fargo Securities, Baird, Canaccord Genuity, Piper Jaffray, William Blair, and MUFG. Shares are expected to price Wednesday and begin trading Thursday on the New York Stock Exchange under the ticker symbol CDAY.

Taiwan Liposome Co. Ltd. is a Taiwan-based clinical-stage specialty pharmaceutical company developing drugs for pain and eye disease. The company plans to offer 4.7 million ADSes (one ADS is equal to two common shares) at an expected price of $7.46 per ADS to raise $36 million at a market cap of $245 million. Underwriters include Cantor Fitzgerald, CITIC CLSA, H.C. Wainwright, Janney Montgomery Scott, and Laidlaw & Co. (U.K.). Shares are expected to price Wednesday and begin trading Thursday on the Nasdaq under the ticker symbol TLC.

DocuSign Inc. provides a cloud-based electronic signature platform. The company plans to offer 21.7 million shares in an expected price range of $24 to $26 to raise $543 million at a market cap of $3.8 billion. Underwriters are Morgan Stanley, J.P. Morgan, Citi, BofA/Merrill Lynch, Deutsche Bank, JMP Securities, Piper Jaffray, and William Blair. Shares are set to price Thursday and begin trading Friday on the Nasdaq under the ticker symbol DOCU.

Goosehead Insurance Inc. operates and franchises personal lines of U.S. insurance agencies. The company plans to offer 8.5 million shares in an expected price range of $14 to $16 to raise $128 million at a market cap of $184 million. Underwriters are J.P. Morgan, BofA/Merrill Lynch, Keefe Bruyette Woods, and William Blair. Shares are scheduled to price Thursday and begin trading Friday on the Nasdaq under the ticker symbol GSHD.

nLight Inc. manufactures high-power semiconductor and fiber lasers. The company plans to offer 5.4 million shares in an expected price range of $13 to $15 to raise $76 million at a market cap of $465 million. Underwriters are Stifel, Raymond James, Needham & Company, Canaccord Genuity, and D.A. Davidson. Shares are scheduled to price Thursday and begin trading Friday on the Nasdaq under the ticker symbol LASR.

Smartsheet Inc. provides a spreadsheet-based work collaboration platform. The company plans to offer 11.6 million shares in an expected price range of $10 to $12 to raise $128 million at a market cap of $1.09 billion. Underwriters include Morgan Stanley, J.P. Morgan, Jefferies, RBC Capital Markets, Canaccord Genuity, William Blair, and SunTrust Robinson Humphrey. Shares are set to price Thursday and begin trading Friday on the New York Stock Exchange under the ticker symbol SMAR.

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