Investing

IPO News This Week: 2 Offerings on Short-Week's Calendar

Paul Ausick

Published: May 27, 2018 8:36 am

Last Updated: January 11, 2020 11:06 pm

Last week’s initial public offering (IPO) calendar included eight firms looking to enter the public markets. Six of the eight were successful and raised a total of around $1.4 billion in new capital, well short of planned $3.1 billion. In the short week ahead two firms that delayed their offerings from last week will try again.

Perhaps the biggest piece of IPO-related news from last week was the withdrawal of the IPO filing for SoulCycle, a high-end workout studio that first filed for an offering back in the summer of 2015.

Now on to last week’s successful IPOs. EVO Payments Inc. (NASDAQ: EVOP) raised $224 million selling 14 million shares at $16, the high end of the expected range. Shares got a first-day pop of 19% and closed the week up 24%.

Kiniksa Pharmaceuticals Ltd. (NASDAQ: KNSA) raised $153 million in an upsized offering of 8.5 million shares priced at $18, the midpoint of the expected range. Shares closed the week up 8% on the Friday IPO.

GreenSky Inc. (NASDAQ: GSKY) raised $874 million on an upsized offering of 38 million shares priced at $23, the high end of the expected range. Shares got a first-day pop of 2% and closed the week up 8%.

Scholar Rock Holding Corp. (NASDAQ: SRRK) raised $75 million selling 5.4 million shares at $14, the midpoint of the expected range. Shares got a first-day pop of 11% and closed the week up 7%.

CLPS Inc. (NASDAQ: CLPS) raised $11 million selling 2 million shares at $5.25, the midpoint of the expected range. Shares got a first-day pop of 5% and closed the week up 3%.

Iterum Therapeutics Inc. (NASDAQ: ITRM) raised $80 million in an upsized offering of 6.2 million shares priced at $13, below the expected range of $14 to $16. Shares closed down 1%  on the Friday IPO.

Through the week ending May 25, IPO ETF manager Renaissance Capital reported that 75 IPOs have priced in the U.S. so far this year, up 21% year over year. Total proceeds raised through last week equaled $24.1 billion, up about 40% 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 two companies that return this week for another run at the capital markets.

Ambow Education Holding Ltd. is a Beijing-based provider of education, test preparation and IT career training services in China. The company plans to offer 1.5 million American Depositary Shares (ADS) in an expected price range of $3.50 to $4.50 to raise $6 million at a market cap of $168 million. Each ADS is equal to two ordinary shares which trade over-the-counter in the U.S. market. Sole underwriter for the offering is The Benchmark Company. ADSes are scheduled only as “week of” and will trade on the Nasdaq under the ticker symbol AMBO.

Hancock Jaffe Laboratories Inc. is a medical device company developing bioprosthetic devices for cardiovascular surgeries. The firm plans to offer 1.1 million shares in an expected price range of $6 to $8 to raise $8 million at a market cap of $71 million. Sole underwriter is Network 1 Financial Securities. Shares are scheduled only as “week of” and will trade on the Nasdaq under the ticker symbol HJLI.

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