Last week’s big winner was Seres Therapeutics Inc. (NASDAQ: MCRB) which began trading on Friday after pricing at $18 a share, above its expected range of $15 to $17. The stock popped 186% by the closing bell, the third largest pop since 2000 according to IPO ETF manager Renaissance Capital.
Another healthcare IPO, Glaukos Corp. (NYSE: GKOS) popped 73% on its first day of trading, but closed the week up 56%. Credit reporting firm TransUnion (NYSE: TRU) finished its first two days of trading up 10%, and its $665 million capital raise was the largest leveraged buyout IPO of the year to date.
One company expected to begin trading last week was Wayne Farms Inc. decided instead to postpone its IPO. Another, CNX Coal Resources LP, delayed its IPO until the coming week.
IPO ETF manager Renaissance Capital reported that 99 IPOs have priced in the U.S. so far this year, down about 32% from a year ago. Total proceeds raised through June 26th equaled $17.7 billion, down about 43% compared with the same period in 2014. Of the 99 IPOs that have gone off this year, 43 have come from the healthcare sector. Last year’s IPO total came in at $85.2 billion, the highest total in the past ten years. Renaissance Capital does not include “best efforts” or blank check companies in its totals.
In the coming week, 5 firms are lined up to price and begin trading including one delayed from last week. The New York Stock Exchange and the Nasdaq will be closed Friday for the Independence Day observance.
The company coming back for a second try this week is CNX Coal Resources LP, a growth-oriented master limited partnership recently formed by CONSOL Energy Inc. (NYSE: CNX) to manage and further develop all of its active thermal coal operations in Pennsylvania. The MLP plans to offer 8 million common units at an IPO price of $15 raising $200 million at a market cap of $232 million. The company revised its terms last Thursday from a previous plan to offer 10 million units in an expected range of $19 to $21 per common unit. Joint bookrunners for the offering include BofA/Merrill Lynch, Wells Fargo Securities, Citi, Jefferies & Co., Scotiabank/Howard Weil, Credit Suisse, J.P. Morgan, Evercore Partners, BB&T Capital Markets, Goldman Sachs, Huntington Investment, Stifel, and Nomura Securities. Co-managers include Clarkson Capital Markets, Cowen & Co., and Tuohy Brothers. The IPO is listed only for the week of June 29th on the New York Stock Exchange under the ticker symbol CNXC.
ConforMIS Inc. is a medical technology company that uses its proprietary technology platform to develop, manufacture and sell joint replacement implants that are individually sized and shaped to fit each patient’s unique anatomy. The company plans to offer 9 million shares in an expected price range of $14 to $16 raising $135 million at a market cap of about $586 million. Joint bookrunners for the offering are J.P. Morgan and Deutsche Bank. Co-managers are Wells Fargo Securities, Canaccord Genuity, and Oppenheimer & Co. Shares are scheduled to price on Tuesday and begin trading Wednesday on the Nasdaq under the ticker symbol CFMS.
LoanCore Realty Trust Inc. is a commercial real estate finance company that originates, invests in,and manages commercial mortgage loans and other commercial real estate-related assets. The company is organized as a REIT and plans to 15 million shares at an IPO price of $20 to raise $300 million at a market cap of around $505 million. Joint bookrunners for the offering are Deutsche Bank, J.P. Morgan, Morgan Stanley, BofA/Merrill Lynch, and Jefferies. Co-managers are Well Fargo Securities, Keefe Bruyette Woods, and JMP Securities. Shares are expected to price Tuesday and begin trading Wednesday on the New York Stock Exchange under the ticker symbol LCRT.
Teladoc Inc. is the first and largest U.S. telehealth platform, delivering on-demand healthcare anytime, anywhere, via mobile devices, the internet, video and phone. The company plans to offer 7 million shares in an expected price range of $15 to $17 to raise $112 million at a market cap of around $573 million. Joint bookrunners for the offering are J.P. Morgan and Deutsche Bank. Co-managers are Wells Fargo Securities, William Blair, and Suntrust Robinson Humphrey. Shares are expected to price Tuesday and begin trading Wednesday on the New York Stock Exchange under the ticker symbol TDOC.
Natera Inc. is a diagnostics company with proprietary molecular and bioinformatics technology that it is deploying to change the management of genetic disease worldwide. The company plans to offer 6.3 million shares in an expected range of $15 to $17, raising $100 million at a market cap of around $715 million. Joint bookrunners for the offering are Morgan Stanley, Cowen & Co., and Piper Jaffray. Co-managers are Baird and Wedbush PacGrow. Shares are scheduled to price on Wednesday and begin trading Thursday on the Nasdaq under the ticker symbol NTRA.
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