Last week’s initial public offerings (IPOs) reaped a total of more than $300 million for four new companies. Three saw first-day pops and finished the first week with positive returns. There are four IPOs on the calendar for the coming week, three first-timers and one returnee.
The big winner last week was Talend SA (NASDAQ: TLND) which priced its offering at $18 per American Depositary Share (ADS), above the expected range of $15 to $17, to raise $95 million. The first-day pop was 42% and shares closed Friday up 42%.
Kinsale Capital Group Inc. (NASDAQ: KNSL) upsized its IPO and priced at the top of its expected $14 to $16 range. The company raised $106 million and got a first-day pop of 15% and closed Friday up 14% from its IPO price.
Tactile Systems Technology Inc. (NASDAQ: TCMD) raised $40 million, selling 4 million shares at $10, well below the expected range of $14 to $16. Shares got a first-day pop of 11% and closed Friday up 13%.
Kadmon Holdings Inc. (NYSE: KDMN) priced 6.25 million shares at $12, again well below the expected range of $16 to $20. Shares lost 19% on their first day of trading and closed Friday down 25%.
Through the week ending July 22, IPO ETF manager Renaissance Capital reported that 52 IPOs have priced in the U.S. so far this year, down 57% from a year ago. Total proceeds raised through last week equaled $8.9 billion, down 58% compared with the same period in 2015. Of the 52 IPOs that have gone off this year, 27 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 new entrant on this week’s IPO calendar is At Home Group Inc., home décor superstore chain. The company plans to offer 8.7 million shares in an expected price range of $14 to $16 to raise $130 million at an implied market cap of $893 million. Joint bookrunners for the offering are BofA/Merrill Lynch, Goldman Sachs, Jefferies, and Morgan Stanley. Co-managers are Evercore ISI, Guggenheim Securities, and William Blair. Shares are scheduled to price Wednesday and begin trading Thursday on the New York Stock Exchange under the ticker symbol HOME.
U.K.-based Motif Bio plc is a clinical stage biopharmaceutical company developing novel antibiotics to treat hospitalized patients infected with multi-drug resistant bacteria. The company already trades on the London AIM and is offering 2.8 million ADSes at $12.42 per ADS, raising $34.8 million at a market cap of $102.2 million. One ADS represents 20 ordinary shares. Joint bookrunners for the offering are SunTrust Robinson Humphrey and Ladenburg Thalmann & Co. Shares are expected to begin trading Friday on the Nasdaq under the ticker symbol MTFB.
First Hawaiian Inc. is a bank holding company headquartered in Honolulu. The company plans to offer 21.1 million shares (all currently owned by parent BNP Paribas) in an expected price range of $21 to $23 to raise $464 million at an implied market cap of about $3.1 billion. Joint bookrunners for the offering are Goldman Sachs, BofA/Merrill Lynch, BNP Paribas, Barclays, Credit Suisse, Deutsche Bank, J.P. Morgan, Citi, Morgan Stanley, and UBS Investment Bank. Co-managers include BBVA, Commerzbank Capital, HSBC Corp., ING, Keefe Bruyette Woods, Banco Santander, and Wells Fargo Securities. Shares are expected to price Thursday and begin trading Friday on the NASDAQ under the ticker symbol FHB.
Returning for another try this week 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 2.75 million units at an expected price of $4.25 to raise $11.7 million at an implied market cap of $29.5 million. Each unit comprises one share of common stock and one three-year warrant to purchase one share of common stock at $5 per share. Joint bookrunners for the offering are Northland Securities and Roth Capital. Shares are listed as day to day and will trade on the Nasdaq under the ticker symbol UAVS.
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