Investing

IPO News This Week: 6 Firms to Test the Market

Paul Ausick

Published: September 30, 2018 9:19 am

Last Updated: January 11, 2020 5:06 pm

Last week’s initial public offering (IPO) action saw 12 companies launch successful offerings that raised $1.2 billion in new capital. A total of six IPOs are scheduled to launch in the coming week, seeking a total of $658 million in new capital.

Here’s a brief rundown of last week’s IPOs.

SVMK Inc. (NASDAQ: SVMK), better known as Survey Monkey, raised $180 million in an upsized offering of 15 million shares priced at $12, above the expected range. Shares got a first-day pop of 44% and closed the week up 34%.

Arco Platform Ltd. (NASDAQ: ARCE) raised $194 million selling 11.11 million shares at $17.50, the high end of the expected range. Shares got a first-day pop of 34% and closed the week up 30%.

Ra Medical Systems Inc. (NYSE: RMED) raised $66 million in an upsized offering of 3.9 million shares priced at $17, above the expected range. Shares got a first-day pop of 18% and closed the week up 7%.

Arvinas Holding Co. Inc. (NASDAQ: ARVN) raised $120 million in a downsized offering of 7.5 million shares priced at $16, the high end of the expected range. Shares traded flat on the first day and closed the week up 5%.

Capital Bancorp Inc. (NASDAQ: CBNK) raised $28 million selling 2.2 million shares priced at $12.50, the low end of the expected range. Shares got a 2% pop on the Friday IPO.

LAIX Inc. (NYSE: LAIX) raised $72 million selling 5.8 million shares priced at $12.50, the midpoint of the expected range. Shares got a first-day pop of 1% and closed the week flat.

Sutro Biopharma Inc. (NASDAQ: STRO) raised $85 million in an upsized offering of 5.7 million shares priced at $15, the midpoint of the expected range. Shares got a 1% first-day pop and closed the week flat.

Viomi Technology Co. Ltd. (NASDAQ: VIOT) raised $103 million selling 11.4 million shares priced at $9, the low end of the expected range. Shares got a first-day pop of 1% and closed the week flat.

Gritstone Oncology Inc. (NASDAQ: GRTS) raised $100 million in an upsized offering of 6.7 million shares priced at $15, the high end of the expected range. Shares dropped 5% on the Friday IPO.

Urovant Sciences Ltd. (NASDAQ: UROV) raised $140 million selling 10 million shares at $14, the low end of the range. Shares dropped 17% on the first trading day and closed the week down 14%.

CooTek (Cayman) Inc. (NYSE: CTK) raised $52 million selling 4.4 million shares priced at $12, the low end of the expected range. Shares ended the week down 21%.

Entasis Therapeutics Holdings Inc. (NASDAQ: ETTX) raised $75 million in an upsized offering of 5 million shares priced at $15, below the expected range. Shares dropped 29% on the first day of trading and closed the week down 27%.

Through the week ending September 28, IPO ETF manager Renaissance Capital reported that 157 IPOs have priced in the United States so far this year, up 48% year over year. Total proceeds raised through last week equaled $39.8 billion, up about 62% 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 IPOs that will test the public markets in the coming week.

Returning after failing to launch last week, YayYo operates a fleet management and auto rental platform for ridesharing drivers. The company plans to offer 625,000 shares in an expected price range of $7 to $9 to raise $5 million at a market cap of $228 million. The sole underwriter is The Benchmark Company. Shares are listed only as “week of” and will trade on the Nasdaq under the ticker symbol YAYO.

ARYA Sciences Acquisition is a blank check company seeking to acquire a healthcare business. The firm plans to offer 12.5 million units at $10 a unit to raise $125 million at a market cap of $156 million. Underwriters are Jefferies and Chardan Capital Markets. Units are listed as “week of” and will trade on the Nasdaq under the ticker symbol ARYAU.

Upwork is a marketplace for hiring and managing remote freelancers. The company plans to offer 12.3 million shares in an expected price range of $10 to $12 to raise $135 million at a market cap of $1.35 billion. Underwriters are Citi, Jefferies, RBC Capital Markets, Stifel and JMP Securities. Shares scheduled to price Tuesday and begin trading Wednesday on the Nasdaq under the ticker symbol UPWK.

Guardant Health manufactures noninvasive blood-based cancer diagnostic tests. The company plans to offer 12.5 million shares in an expected price range of $15 to $17 to raise $200 million at a market cap of $1.43 billion. Underwriters are JPMorgan, Merrill Lynch, Leerink Partners, Cowen and William Blair. Shares scheduled to price Wednesday and begin trading Thursday on the Nasdaq under the ticker symbol GH.

Kodiak Sciences is a Phase 1 biotechnology company developing novel therapies to treat high-prevalence ophthalmic diseases. The company plans to offer 9 million shares in an expected price range of $13 to $15 to raise $126 million at a market cap of $530 million. Underwriters are Morgan Stanley, Merrill Lynch, Barclays and Chardan Capital Markets. Shares scheduled to price Wednesday and begin trading Thursday on the Nasdaq under the ticker symbol KOD.

Elastic makes and sells open-source data search and visualization software. The company plans to offer 7 million shares in an expected price range of $26 to $29 to raise $193 million at a market cap of $2.35 billion. Underwriters include Goldman Sachs, JPMorgan, Barclays, RBC Capital Markets, Merrill Lynch, Citi, Jefferies and Canaccord Genuity. Shares scheduled to price Thursday and begin trading Friday on the New York Stock Exchange under the ticker symbol ESTC.

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