The initial public offering (IPO) market has apparently begun its holiday vacation early this year. No IPOs were launched in the first week of December, and only one is on the calendar for next week. And that’s it for the month, which is on-track for the fewest IPOs in December since 2008 when exactly zero companies came public.
Through the week ending December 4, IPO ETF manager Renaissance Capital reported that 168 IPOs have priced in the United States so far this year, down nearly 36% from a year ago. Total proceeds raised through last week equaled $29.5 billion, down 64% compared with the same period in 2014. Of the 168 IPOs that have gone off this year, 78 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. Renaissance Capital does not include “best efforts” or blank-check companies in its totals.
The week’s only scheduled IPO is Australia-based and London-registered Atlassian Corporation, makers of a software product that helps software developers collaborate better with nondeveloper teams. The company plans to offer 20 million Class A shares in an expected price range of $16.50 to $18.50 to raise $350 million at an implied market cap of around $3.62 billion. Joint bookrunners for the offering include Goldman Sachs, Morgan Stanley, Allen, UBS Investment Bank and Jefferies. Co-managers include Canaccord Genuity, JMP Securities, Raymond James and William Blair. Shares are expected to price Wednesday and begin trading Thursday on the Nasdaq under the ticker symbol TEAM.
Sole Elite Group Ltd., a China-based maker of shoe soles used in the manufacture of sports shoes, continues its weeks-long effort to launch its IPO. The company has slashed the number of shares it plans to offer to 2 million and added a warrant to each share that is exercisable at 120% of the IPO price. The firm also lowered its expected price range to $5.50 to $7.00. Joint bookrunners for the offering are Dawson James and ViewTrade. The shares are shown as day-to-day and will trade on the Nasdaq under the ticker symbol SOLE.
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