IPO News This Week: 7 Offerings on the Calendar Seeking $1.4 Billion

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Last week’s initial public offering (IPO) calendar included two firms looking to enter the public markets. Both were successful and raised a total of around $113 million in new capital, somewhat less than planned. The coming week includes seven scheduled IPO’s look to raise $1.4 billion in new capital.

MeiraGTx Holdings plc (NASDAQ: MGTX) raised $75 million selling 5 million shares at $15, the midpoint of the expected range. Shares closed flat on the Friday IPO.

M17 Entertainment Ltd. (NYSE: YQ) raised $60 million by selling 7.5 million shares at $8, well below the expected range of $10 to $12. Shares dropped 27% on the first day of trading but closed the week flat to the IPO price.

Through the week ending June 1, IPO ETF manager Renaissance Capital reported that 79 IPOs have priced in the U.S. so far this year, up 23% year over year. Total proceeds raised through last week equaled $24.3 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 seven companies planning to invade the capital markets this week.

Far Point Acquisition Corp. is a blank-check company targeting an acquisition in the financial technology, technology, or financial services business. The company plans to offer 50 million units at $10 per unit of one common share and one redeemable warrant for an additional one-third share. The firm plans to raise $500 million at a market cap of $625 million. Underwriters are Credit Suisse and BofA/Merrill Lynch. Units begin trading Tuesday on the New York Stock Exchange under the ticker symbol FPAC.U.

Adaptive Insights Inc. offers a cloud-based software platform for financial planning. The company plans to sell 8.2 million shares in an expected price range of $13 to $15 to raise $115 million at a market cap of $705 million. Underwriters include Morgan Stanley, BofA/Merrill Lynch, Jefferies, RBC Capital Markets, JMP Securities, and Oppenheimer & Co. Shares are expected to price Wednesday and begin trading Thursday on the New York Stock Exchange under the ticker symbol ADIN.

Charah Solutions Inc. provides remediation and maintenance services to coal and nuclear power plants. The company plans to sell 7.4 million share in an expected price range of $16 to $18 to raise $125 million at a market cap of $515 million. Underwriters include Morgan Stanley, BofA/Merrill Lynch, Stifel, Macquarie Capital, First Analysis Securities, and Houlihan Lokey. Shares are expected to price Wednesday and begin trading Thursday on the New York Stock Exchange under the ticker symbol CHRA.

U.S. Xpress Enterprises Inc. is a trucking company serving primarily the eastern half of the United States. The company plans to offer 18 million shares in an expected price range of $18 to $20 to raise $343 million at a market cap of $947 million. Underwriters include BofA/Merrill Lynch, Morgan Stanley, J.P. Morgan, Wells Fargo Securities, Stephens Inc., Stifel, and Wolfe Research Securities. Shares are expected to price Wednesday and begin trading Thursday on the New York Stock Exchange under the ticker symbol USX.

Avalara Inc. sells prepackaged cloud-based sales tax and compliance software solutions. The company plans to offer 7.5 million shares in an expected price range of $19 to $21 to raise $150 million at a market cap of $1.4 billion. Underwriters are Goldman Sachs, J.P. Morgan, BofA/Merrill Lynch, JMP Securities, KeyBanc Capital Markets, and Stifel. Shares are expected to price Thursday and begin trading Friday on the New York Stock Exchange under the ticker symbol AVLR.

Puxin Ltd. is a Beijing-based provider of K-12 after-school tutoring services. The company plans to sell 7.2 million American Depositary Shares (ADS) in an expected price range of $17 to $20 to raise $133 million at a market cap of $1.7 billion. Each ADS represents two ordinary shares. Underwriters are Citi, Deutsche Bank, Barclays, Haitong, and CICC. Shares are expected to price Thursday and begin trading Friday on the New York Stock Exchange under the ticker symbol NEW.

Verrica Pharmaceuticals Inc. is a clinical-stage medical dermatology company developing a drug-device to administer cantharidin for warts and skin diseases. The company plans to sell 5 million shares in an expected price range of $14 to $16 to raise $75 million at a market cap of $385 million. Underwriters are BofA/Merrill Lynch, Jefferies, and Cowen & Co. Shares are expected to price Thursday and begin trading Friday on the Nasdaq under the ticker symbol VRCA.