Now that it is finally here, the coming week’s initial public offering (IPO) for China’s Alibaba Group Holding Co. Inc. is anything but anti-climactic. Everyone expected the offering to be big, now the question is how big.
The largest ever U.S. IPO to date was Visa Inc. (NYSE: V), which brought in $17.86 billion in 2008. Facebook Inc. (NASDAQ: FB) raised just over $16 billion in its 2012 IPO, placing it third after Italian utility Enel SpA’s IPO in 1999, which raised $16.45 billion (Enel no longer trades on the New York Stock Exchange).
As we noted on Friday, Alibaba’s roadshow may end on Wednesday with the stock pricing above its currently expected range of $60 to $66 a share and the IPO including more than the originally planned 320.1 million shares. The underwriters have an option on an additional 48 million shares. There are plenty of risks associated with Alibaba’s IPO, and we looked at some of them last Wednesday.
Whether Alibaba’s shares debut on Thursday or Friday, they will trade on the New York Stock Exchange under the ticker symbol BABA.
According to Renaissance Capital, 190 IPOs have priced in the United States so far this year, up 44% from a year ago. Total proceeds raised come to $40.2 billion, up nearly 41% from 2013. In the month of August, IPO proceeds totaled just $0.9 billion, the lowest monthly total so far in 2014. The 2013 IPO total came in at $54.9 billion, the highest total in the past 10 years. September’s total will easily be the highest of the year, given the size of the Alibaba offering.
Here’s a quick look at the other six IPOs we expect to price this week. All but one are biotech firms.
Civitas Solutions Inc. is the country’s leading provider of in-home and community-based health services. The firm plans to offer 11.7 million shares in an expected range of $20 to $23, raising about $252 million at a market cap of around $795 million. Shares are expected to price on Tuesday and begin trading Wednesday on the New York Stock Exchange under the ticker symbol CIVI.
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rEVO Biologics Inc. is a commercial-stage biopharmaceutical firm that focuses on developing specialty therapeutics for patients with rare and life-threatening conditions. The Massachusetts-based company plans to offer 3.6 million shares in a price range of $13 to $15. At the midpoint, rEVO would gross about $50 million at a market cap of nearly $260 million. The shares are scheduled to price on Tuesday and begin trading Wednesday on the Nasdaq under the ticker symbol RBIO.
Tokai Pharmaceuticals Inc. is a clinical-stage biopharmaceutical company developing treatments for prostate cancer and other hormonally-driven diseases. The company is offering 5.4 million shares in a price range of $13 to $15 and expects to raise about $75 million at a market cap of around $290 million. The shares are expected to price on Tuesday and begin trading Wednesday on the Nasdaq under the ticker symbol TKAI.
Foamix Ltd. is another clinical-stage pharmaceutical firm. The Israel-based firm is developing a foam treatment for acne, impetigo and other skin conditions. Foamix plans to offer 5.9 million shares in an expected range of $10 to $12. Gross proceeds would be $65 million at a market value of around $234 million. The shares are expected to price on Wednesday and begin trading Thursday on the Nasdaq under the ticker symbol FOMX.
ProQR Therapeutics B.V. is a biopharmaceutical firm based in The Netherlands that is developing RNA-based therapeutics for treating severe genetic disorders. The company plans to offer 6.3 million shares in a price range of $11 to $13 a share. Gross proceeds would be about $75 million at a market cap of around $252 million. The shares are expected to price on Wednesday and begin trading Thursday on the Nasdaq under the ticker symbol PRQR.
Viking Therapeutics Inc. is a clinical-stage biopharmaceutical company based in California that is focused on developing therapies for metabolic and endocrine disorders. The company plans to offer 5 million shares in a price range of $10 to $12, raising $55 million at a market cap of about $167 million. Shares are expected to price on Wednesday and begin trading Thursday on the Nasdaq under the ticker symbol VKTX.
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