First IPO of 2016 on Tap This Week

By Paul Ausick Updated Jan 13, 3:13PM EST · Published Jan 10, 9:25AM EST

Follow 24/7 Wall St. on Google

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

First IPO of 2016 on Tap This Week — © Thinkstock

While 2016 initial public offerings (IPOs) are not starting the year with a bang, at least the first IPO of the year is scheduled to occur in the coming week. A second try is also on the calendar for a special-purpose acquisition (blank-check) company.

In 2015, a total of 170 companies launched into the public markets, according to IPO ETF manager Renaissance Capital, and those companies raised a total of $30 billion. Of the total, 78 newly public companies came from the health care sector. In 2014, 275 companies came public and raised $85.3 billion. Renaissance Capital does not include “best efforts” or blank-check companies in its totals.

On the brighter side, 12 companies have already filed for IPOs in the first week of 2016, compared with none that had filed at the same time last year. Nine of the 12 were biotechs, and that number represents more biotech IPO filings than in any week last year.

The first IPO of 2016 is Shimmick Construction Company, a heavy civil construction company offering services to federal, state and local public agencies and private customers in California and the Western United States. The company plans to offer 6.25 million shares in an expected price range of $11 to $13. Approximately half the shares are being sold by existing stakeholders, so the company’s proceeds at the midpoint of the range would be about $44.8 million, at an implied market cap of $181.5 million. Sole bookrunner for the offering is FBR Capital Markets and co-managers are BB&T Capital Markets and D.A. Davidson. Shares are expected to price on Thursday and begin trading Friday on the Nasdaq under the ticker symbol SCCI.
[nativounit]
The week’s second scheduled offering is blank-check company, Pulte Acquisition, which plans to offer 7 million units at an IPO price of $10 per unit. Each unit comprises one share of common stock and one-half of one warrant. One warrant entitles the holder to purchase one share of common stock at an exercise price of $11.50 per share. Sole underwriter for the offering is Chardan Capital Markets. Units are expected to begin trading during the week of January 11 on the Nasdaq under the ticker symbol PLTEU.

About the Author Paul Ausick →

Paul Ausick has been writing for a673b.bigscoots-temp.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.

He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.