Two of three initial public offerings (IPOs) scheduled for last week made it out the door, but neither was a huge success. Four more are on the calendar for the coming week, including an IPO a tech unicorn.
Paragon Commercial Corp. (NASDAQ: PBNC), a North Carolina commercial bank, sold 736,000 shares at $34 per share, the midpoint of its expected range, to raise $25 million. Shares popped less than 2% on the first day of trading, but closed the week up nearly 3%.
Viveve Medical Inc. (NASDAQ: VIVE), a medical devices company, sold 1.6 million shares at $5 a share, nearly 40% below its expected price of $8, raising $14 million. Shares closed down 1% on the first day of trading and down about 0.4% for the week.
PSAV Inc., an audio-visual equipment service for U.S. hotels, postponed its planned offering. The Goldman Sachs LBO cited poor market conditions as the reason for the postponement.
Through the week ending June 17, IPO ETF manager Renaissance Capital reported that 38 IPOs have priced in the U.S. so far this year, down about 56% from a year ago. Total proceeds raised through last week equaled $5.8 billion, down nearly 64% compared with the same period in 2015. Of the 38 IPOs that have gone off this year, 21 have come from the healthcare sector. Last year’s IPO total came in at $30 billion on 170 offerings. Renaissance Capital does not include “best efforts” or blank-check companies in its totals.
Here are the coming week’s offerings.
Selecta Biosciences Inc. is a clinical-stage biopharmaceutical firm is developing therapies designed to modulate the immune system to treat rare and serious diseases. The company plans to offer 4.3 million shares in an expected price range of $14 to $16 to raise about $64 million at an implied market cap of $253.5 million. Joint bookrunners for the offering are UBS Investment Bank and Stifel. Co-managers are Canaccord Genuity and Needham & Co. Shares are expected to price Tuesday and begin trading Wednesday on the Nasdaq under the ticker symbol SELB.
Tactile Systems Technology Inc. is a medical technology company that develops and provides medical devices to treat chronic diseases at home. The company plans to offer 4 million share in an expected price range of $14 to $16 to raise $60 million at an implied market cap of $263.3 million. Joint bookrunners for the offering are Piper Jaffray, William Blair, and Canaccord Genuity. Co-manager is BTIG. Shares are expected to price Tuesday and begin trading Wednesday on the Nasdaq under the ticker symbol TCMD.
Gemphire Therapeutics Inc. is another clinical-stage biopharmaceutical firm developing therapies to treat dyslipidemia, a serious medical condition that increases the risk of life-threatening cardiovascular disease. The company plans to offer 3.8 million shares in an expected price range of $11 to $13 to raise $45 million at an implied market cap of $110.2 million. Joint bookrunners are Jefferies and RBC Capital Markets. Co-managers are Canaccord Genuity and Roth Capital. Shares are expected to price Wednesday and begin trading Thursday on the Nasdaq under the ticker symbol GEMP.
Twilio Inc. provides a software API to help developers add messaging, voice, and video to applications. The company plans to offer 10 million shares in an expected price range of $12 to $14, raising $130 million at an implied market cap of $1.07 billion. Joint bookrunners for the offering are Goldman Sachs and J.P. Morgan. Co-managers include Allen & Company, Pacific Crest, JMP Securities, William Blair, and Canaccord Genuity. Shares are expected to price Wednesday and begin trading Thursday on the New York Stock Exchange under the ticker symbol TWLO.
Continuing to be listed as day-to day is Cancer Prevention Pharmaceuticals Inc., a clinical-stage biopharmaceutical company developing and commercializing therapeutic agents to treat and prevent certain pre-cancerous conditions, orphan diseases, and gastrointestinal conditions. The company downsized it offering from 1.9 million shares to 1.25 million in an expected price range of $12 to $14 to raise $16.3 million at an implied market cap of $87.9 million. Sole bookrunner for the offering is Aegis Capital Corp. Shares are expected to trade on the New York Stock Exchange under the ticker symbol CPP.
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