Investing

8 IPO Hopefuls for Week of July 18

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Of six potential initial public offerings (IPOs) scheduled for last week, just two succeeded although one raised more than $1 billion. Including returnees, next week’s calendar includes 8 potential IPOs.

The week’s big story was Japan-based LINE Corp. (NYSE: LN), a global mobile messaging and communications services platform. The company priced 13% above the midpoint of its expected range and raised $1.15 billion in a combined offering of 22 million American Depositary Shares (ADSes) and 13 million shares trading in Tokyo. The first day pop on the ADSes was 27% and they closed the week up 20% at $39.65.

AdvancePierre Foods Holdings Inc. (NYSE: APFH) produces and distributes ready-to-eat sandwiches, sandwich components, and other entrées and snacks. The shares price just below the midpoint of the expected range and the first day’s pop equaled 14%. Shares closed the week flat.

Through the week ending July 8, IPO ETF manager Renaissance Capital reported that 44 IPOs have priced in the U.S. so far this year, down 61% from a year ago. Total proceeds raised through last week equaled $7.7 billion, down nearly 60% compared with the same period in 2015. Of the 44 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.

The first of the coming week’s new offering is Audentes Therapeutics Inc., a biotechnology company working on gene therapy products to treat diseases caused by single gene defects. The company plans to offer 5 million shares in an expected price range of $14 to $16 to raise $75 million at an implied market cap of $315 million. Joint bookrunners for the offering are BofA/Merrill Lynch, Cowen & Company, and Piper Jaffray. Co-manager is Wedbush PacGrow. Shares are scheduled to price Wednesday and begin trading Thursday on the Nasdaq under the ticker symbol BOLD.

Impinj Inc. is a maker of wireless connectivity products that help provide businesses with real-time information on everyday items like apparel and medical supplies. The company plans to offer 4.6 million shares in an IPO price range of $14 to $16, raising $69 million at an implied market cap of $264 million. Joint underwriters are RBC Capital Markets, Pacific Crest, and Piper Jaffray. Co-managers are Needham & Co. and Canaccord Genuity. Shares are scheduled to price Wednesday and begin trading Thursday on the Nasdaq under the ticker symbol PI.

Patheon NV is a Netherlands-based contract pharmaceutical development and manufacturing company. The company plans to offer 25.6 million shares in an expected price range of $19 to $22 million to raise $625 million at an implied market cap of $1.78 billion. An additional 4.9 million shares are being offered by a selling shareholder. Joint bookrunners for the offering include J.P. Morgan, Morgan Stanley, Jefferies, UBS Investment Bank, Credit Suisse, Evercore ISI, and Wells Fargo Securities. Co-managers include Baird, Piper Jaffray, Raymond James, and William Blair. Shares are scheduled to price Wednesday and begin trading Thursday on the New York Stock Exchange under the ticker symbol PTHN.

TPI Composites Inc. is a manufacturer of composite wind blades. The company plans to offer 7.3 million shares in an expected price range of $15 to $17 to raise $116 million at an implied market cap of $525 million. Joint bookrunners for the offering are J.P. Morgan and Morgan Stanley. Co-managers are Cowen & Company, Raymond James, and Canaccord Genuity. Shares are expected to price Wednesday and begin trading Thursday on the Nasdaq under the ticker symbol TPIC.

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.

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