5 Potential IPOs in Holiday-Shortened Week

Last week was a good week for new filings for initial public offerings (IPOs), but not so good for the three of the five firms that had schedule their initial offerings. Only 2 launched successfully and both priced below their expected midpoint although both ended the week with gains.

Global Medical REIT Inc. (NYSE: GMR) raised the size of its offering from 9 to 13 million shares, but priced at the low end of the $10 to $12 expected range. The firm raised $130 million and finished the week up 1.5%.

Syros Pharmaceuticals Inc. (NASDAQ: SYRS) issued 4 million shares at $12.50, well below its expected range of $14 to $16 per share. The stock got a first day pop of 45% and finished the week up nearly 55%.

Through the week ending July 1, IPO ETF manager Renaissance Capital reported that 42 IPOs have priced in the U.S. so far this year, down 60% from a year ago. Total proceeds raised through last week equaled $6.2 billion, down more than 66% compared with the same period in 2015. Of the 42 IPOs that have gone off this year, 23 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.

The coming week, shortened by the July Fourth holiday, may include up to five IPOs, all back for  another try.

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AgEagle Aerial Systems Inc. designs and manufactures small unmanned aerial vehicles (UAVs or, more commonly, drones) for the agricultural industry. The firm plans to offer 2.7 million shares in an expected price range of $5 to $6 to raise $15 million at an implied market cap of $23.1 million. Joint bookrunners for the offering are Northland Securities and Roth Capital. Shares are listed as day to day and will on the Nasdaq under the ticker symbol UAVS.

Monster Digital Inc. designs develops, and markets premium products under the “Monster Digital” brand for use in high-performance consumer electronics, mobile products and computing applications. The company plans to offer 2.5 million shares of common stock and five-year warrants to purchase 2.5 million shares of common stock in an expected price range of $4.50 to $5.00, to raise about $12 million at an implied market cap of $36.3 million. Immediately after the offering, shares and warrants will trade separately. Sole bookrunner for the offering is Axiom Capital Management and sole co-manager is WestPark Capital. The offering is expected to price Wednesday and beginning trading Thursday. Shares will trade on the Nasdaq under the ticker symbol MSDI. Warrants will also trade on the Nasdaq under the ticker symbol MSDIW.

Another returnee this week is Tactile Systems Technology Inc., a medical technology company that develops and provides medical devices to treat chronic diseases at home. The company plans to offer 4 million shares in an expected price range of $14 to $16 to raise $60 million at an implied market cap of $236.3 million. Joint bookrunners for the offering are Piper Jaffray, William Blair, and Canaccord Genuity. Co-manager is BTIG. Shares are listed as day-to-day and will trade on the Nasdaq under the ticker symbol TCMD.

Also returning for another go is Gemphire Therapeutics Inc., a 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 listed as day-to-day and will trade on the Nasdaq under the ticker symbol GEMP.

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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