Investing

6 IPOs on Calendar for Week of July 11

Paul Ausick

Published: July 10, 2016 8:58 am

Last Updated: January 13, 2020 5:54 am

Of five potential initial public offerings (IPOs) scheduled for last week, just one priced and completed. The other four continue to be listed as day-to-day for the coming week along with two first-time offerings.

Monster Digital Inc. (NASDAQ: MSDI) on Friday priced 2 million shares $4.50, the low end of the expected range, raising gross proceeds of $9.13 million. The company also sold 2 million warrants (NASDAQ: MSDIW) with an exercise price of $5.625 at $0.01 per warrant. Shares closed at $3.68, down about 18.2% after touching a low of $3.31.

Through the week ending July 8, 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, nor does it include IPOs that raise less than $10 million.

New this week is a much-anticipated offering from Japan-based LINE Corp., a global mobile messaging and communications services platform. The company plans to sell 22 American Depositary Shares (ADSes) and 13 million Tokyo-traded shares in an expected price range of $28.50 to $32.50 to raise $1.07 billion at an implied market cap of $6.4 billion. Each ADS is equal to one share of common stock. Joint bookrunners for the offering are Morgan Stanley, Goldman Sachs, J.P. Morgan, and Nomura Securities. ADSes are expected to price Wednesday and begin trading Thursday on the New York Stock Exchange under the ticker symbol LN. Common stock will trade on the Tokyo Stock Exchange under the securities identification code 3938.

AdvancePierre Foods Holdings Inc. is a producer and distributor of ready-to-eat sandwiches, sandwich components, and other entrées and snacks. The company is offering 18.6 million shares in an expected price range of $20 to $23. Selling stockholders will offer 11.1 million shares for which the company will receive none of the proceeds. The company is selling 7.5 million shares to raise gross proceeds of $161 million at an implied market cap of $2.4 billion. Joint bookrunners for the offering are Barclays, Credit Suisse, Morgan Stanley, Goldman Sachs, BMO Capital Markets, and Deutsche Bank. Co-managers are BofA/Merrill Lynch, Wells Fargo Securities, and Houlihan Lokey. Shares are expected to price Thursday and begin trading Friday on the New York Stock Exchange under the ticker symbol APFH.

The first in our listing of companies returning for another try at an IPO is AgEagle Aerial Systems Inc. which 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.

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.