Investing

Health Care Dominates IPO Schedule for First Week of February

IPO
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Following a sluggish start at the beginning of January, the initial public offering (IPO) train left the station last week with 10 of 11 IPOs priced and traded. The week’s highlight was upscale burger restaurant Shake Shack Inc. (NYSE: SHAK), which priced at $21, well above even its higher price range, and then more than doubled by the close on Friday. Including one holdover from last week, there are 12 IPOs on the calendar for the first week of February.

IPO ETF manager Renaissance Capital reported that 14 IPOs have priced in the United States so far this year, down about 18% from a year ago. Total proceeds raised come to $1.7 billion, down about 68% compared with the same period in 2014. Of the IPOs that have gone off this year, eight have come from the health care sector. Last year’s IPO total came in at $85.2 billion, the highest total in the past 10 years.

Here is a look at the IPOs on the schedule for the coming week.

The holdover from last week is Infraredx Inc., a cardiovascular imaging company working on the diagnosis and treatment of coronary artery disease. The company plans to offer 4 million shares in an expected price range of $13 to $15 to raise $56 million at a market cap of nearly $200 million. Joint bookrunners for the offering are RBC Capital Markets, Canaccord Genuity and BMO Capital Markets. Co-managers are Oppenheimer and BTIG. Shares are scheduled to price on Tuesday and begin trading Wednesday on the Nasdaq under the ticker symbol REDX.

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Eyegate Pharmaceuticals Inc. is a clinical-stage specialty pharmaceutical company focused on developing and commercializing therapeutics and drug delivery systems for treating eye diseases. The company plans to sell 1.4 million shares in an expected price range of $6 to $8 to raise $10 million at a market cap of $48.3 million. Joint bookrunners for the offering are Aegis Capital and Chardan Capital Markets. No date other than next week has been set for pricing. Shares will trade on the Nasdaq under the ticker symbol EYEG.

Barington/Hilco Acquisition Corp. is a blank-check company that plans to offer 4 million units at $10 each to raise $40 million at a market cap of about $53 million. Each unit includes one share of common stock, one right to receive one-tenth of a share of common stock on the consummation of the first business combination, and one warrant entitling the holder to purchase one-half share of common stock. EarlyBird Capital is the sole bookrunner. Co-managers are Aegis Capital and i-Bankers Securities. Units will trade on the Nasdaq under the ticker symbol BHACU.

AltheaDx Inc. is a commercial stage molecular diagnostics company specializing in the field of personalized medicine. The company plans to sell 4.6 million shares in an IPO price range of $12 to $14, raising $60 million at a market cap of $160.8 million. Joint bookrunners are Citigroup and Jefferies. Co-managers are William Blair and Cantor Fitzgerald. The stock is expected to price on Tuesday and begin trading Wednesday on the Nasdaq under the ticker symbol IDGX.

Carbylan Therapeutics Inc. is a clinical-stage specialty pharmaceutical company developing an injectable product to treat pain associated with osteoarthritis. The company plans to sell 5.8 million shares in an expected price range of $12 to $14 to raise $75.4 million at a market cap of about $198 million. Sole bookrunner for the offering is Leerink Partners. Co-managers are JMP Securities and Wedbush Pac Grow. The shares are expected to price on Tuesday and begin trading Wednesday on the Nasdaq under the ticker symbol CBYL.

Advanced Accelerator Applications S.A. is a France-based radiopharmaceutical company that develops, produces and commercializes MNM diagnostic and therapeutic products. The company plans to offer 5.4 million American depositary shares (ADS) in an expected price range of $13 to $15. One ADS is equal to two ordinary shares. The company expects to raise $75.1 million at a market cap of $517.6 million. Joint bookrunners for the offering are Citigroup and Jefferies. Co-managers are Canaccord Genuity and JMP Securities. Shares are expected to price on Wednesday and begin trading Thursday on the Nasdaq under the ticker symbol AAAP.

Asante Solutions Inc. is a medical device company currently developing a modular insulin pump for diabetes treatment. The company plans to offer 3.5 million shares in an IPO price range of $13 to $15, raising $49 million at a market cap of $166.6 million. Joint bookrunners are Leerink Partners and Cowen. Co-managers are Wells Fargo Securities and Oppenheimer. Shares are scheduled to price on Wednesday and begin trading Thursday on the Nasdaq under the ticker symbol PUMP.

Inotek Pharmaceuticals Corp. is a clinical-stage biopharmaceutical company focused on the discovery, development and commercialization of therapies for glaucoma. The company plans to offer 4.6 million shares in an expected price range of $13 to $15 to raise $65 million at a market cap of $191.3 million. Joint bookrunners for the offering are Cowen, Piper Jaffray, Canaccord Genuity and Nomura Securities. Shares are set to price on Wednesday and begin trading Thursday on the Nasdaq under the ticker symbol ITEK.

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Nexvet Biopharma PLC is an Ireland-based clinical-stage biopharmaceutical company focused on transforming the therapeutic market for companion animals by developing and commercializing novel, species-specific biologics based on human biologics. The company plans to offer 4 million shares in an expected price range of $13 to $16, raising $58 million. Joint bookrunners are Bank of America Merrill Lynch and Cowen. Co-managers are Piper Jaffray and JMP Securities. Shares are scheduled to price on Wednesday and begin trading Thursday on the Nasdaq under the ticker symbol NVET.

Check-Cap Ltd. is an Israel-based clinical stage medical diagnostics company engaged in the development of an ingestible imaging capsule that utilizes low-dose X-rays for colorectal cancer screening. The company plans to offer 1.2 million units consisting of one ordinary share and one-half of a warrant to purchase one ordinary share. The company plans to price the offering at $10 to $12 per unit and raise $13.2 million. Joint bookrunners for the offering are Chardan Capital Markets and Maxim Group. Co-manager is Feltl and Company. Units are expected to price on Thursday and begin trading Friday on the Nasdaq under the ticker symbol CHEK.

Columbia Pipeline Partners L.P. is a master limited partnership (MLP) formed by NiSource Inc. (NYSE: NI) to own, operate and develop a portfolio of pipelines, storage and related natural gas midstream assets. The company plans to offer 40 million common units in an expected price range of $19 to $21, raising $800 million at a market cap of $936.2 million. Joint bookrunners for the offering include Barclays, Citigropu, Merrill Lynch, Goldman Sachs, J.P. Morgan, Morgan Stanley and Wells Fargo Securities. Co-managers include BNP Paribas, Credit Suisse, RBC Capital Markets, Fifth Third Securities, KeyBanc Capital Markets, Mitsubishi UFJ Securities, Mizuho Securities, Scotiabank/Howard Weil and Huntington Investment. Shares are scheduled to price on Thursday and begin trading Friday on the New York Stock Exchange under the ticker symbol CPPL.

Easterly Government Properties Inc. is an internally managed real estate investment trust (REIT) established to acquire, develop and manage Class A commercial properties that are leased to the U.S. government. The company plans to offer 12 million shares in an expected price range of $14 to $16, raising $180 million at a market cap of $569.5 million. Joint bookrunners for the offering are Citigroup, Raymond James and RBC Capital Markets. Co-managers are Piper Jaffray, PNC Capital Markets and Suntrust Robinson Humphrey.

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