The first three weeks of 2016 have not produced a single initial public offering (IPO) but that sad situation may change in the coming week with four offerings on the calendar. With equities selling off at their recent pace, it’s probably no wonder that new companies are either gun-shy or can’t drum up enough interest.
Last week, Elevate Credit Inc. postponed its planned offering of 3.6 million shares at $20 to $22 per share saying that market volatility was the key factor and that the company would be evaluating timing for the IPO. Shimmick Construction once again delayed its IPO and is listed as day-to-day for the coming week.
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 healthcare 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.
Shimmick Construction Company Inc., 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. Pricing and the start of trading are given as day-to-day. The stock will trade on the Nasdaq under the ticker symbol SCCI.
Nordic Realty Trust is a REIT that plans to focus on the acquisition, ownership, leasing, management, and redevelopment of office and industrial properties located in the Nordic countries. The company plans to offer 5 million shares at a price of $15, raising $75 million at an implied market cap of $80.6 million. Concurrently the firm will sell $3 million in shares at the same price in a private placement. Sole bookrunner for the offering is Wunderlich Securities. Co-managers include Compass Point, Janney Montgomery Scott, JMP Securities, Nomura Securities, Ladenburg Thalmann & Co., National Securities, and Boenning & Scattergood. Pricing and trading are listed only as scheduled for the week of January 25th. Shares will trade on the Nasdaq under the ticker symbol NORT.
AmeriQuest Inc. is a cloud-based provider of products to address the financial process, procurement, and asset management needs of businesses. The company plans to offer 6.15 million shares in an expected price range of $11 to $13, raising about $74 million at an implied market cap of about $229 million. Joint bookrunners for the offering are Raymond James and Stephens Inc. Co-managers are Baird and William Blair. Shares are expected to price Tuesday and begin trading Wednesday on the Nasdaq under the ticker symbol AMQ.
Advanced Inhalation Therapies (AIT) Ltd. is an Israel-based company that is developing a single proprietary 160 parts-per-million nitric oxide formulation and delivery system to treat various respiratory infections. The company plans to offer 675,000 units at $15 per unit. Each unit consists of two ordinary shares and three warrants to purchase one ordinary share. The company plans to raise $10.1 million at an implied market cap of $66.3 million. Sole bookrunner is Joseph Gunnar & Co. Units, shares, and warrants are expected to begin trading on Thursday on the Nasdaq under the ticker symbols AITPU, AITP, and AITPW, respectively.
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