Investing

IPO Market Heats Up for First Week of December

Paul Ausick

Published: December 4, 2016 9:26 am

Last Updated: January 12, 2020 5:09 pm

Only one of two proposed initial public offerings (IPOs) was completed last week, getting the post-Thanksgiving IPO market off to a slow start. That should change this week, with seven companies on the IPO calendar.

Last week’s only successful launch was Innovative Industrial Properties Inc. (NYSE: IIPR), a REIT focused on the acquisition, ownership, and management of specialized industrial properties leased to experienced, state-licensed operators for their regulated medical-use cannabis facilities. The company raised $67 million at a market cap of $68 million after reducing the number of shares on offer from an initial total of 8.75 million to 3.35 million.

Through the week ending November 25 IPO ETF manager Renaissance Capital reported that 98 IPOs have priced in the U.S. so far this year, down about 42% from a year ago. Total proceeds raised through last week equaled $17.3 billion, also down about 42% compared with the same period in 2015. Of the 98 IPOs that have gone off this year, 41 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.

Here are the six IPOs that will try to enter the public equity markets in the coming week. Four are back for another try after postponing previous planned IPOs.

Returning from last week is Eagleline Acquisition Corp., a blank-check company that intends to concentrate its efforts on businesses supplying services to the healthcare industry. The firm plans sell 15 million units at $10 per unit to raise $150 million. Each unit includes one share of class A common stock and one-half of one warrant to purchase an additional share. Units are listed as day-to-day and will trade on the Nasdaq under the symbol IGLEU.

Polar Power Inc. designs, manufactures, and sells DC power systems primarily to the telecom market. The company plans to offer 2 million shares in an expected price range of $7 to $8 to raise $15 million at an implied market cap of $70.4 million. Shares are expected to price Tuesday and begin trading Wednesday on the Nasdaq under the ticker symbol POLA.

CollPlant Holdings Ltd. is a clinical-stage regenerative medicine company. The Israel-based company’s shares currently trade on the Tel Aviv Stock Exchange and American Depositary Shares (ADS) trade on the OTCQX in the United States. The company plans to sell 3.5 million shares at an IPO price of $6.23 to raise $25 million at a market cap of $35.2 million. Shares are expected to begin trading Thursday on the Nasdaq under the ticker symbol CLGN.

Athene Holding Ltd. is a retirement services company that issues, reinsures, and acquires retirement savings products. The company plans to offer 23.8 million shares in an expected price range of $38 to $42 to raise $950 million at an implied market cap of $7.63 billion. Shares are expected to price Thursday and begin trading Friday on the New York Stock Exchange under the ticker symbol ATH.

Ichor Holdings Ltd. designs and manufactures critical fluid delivery systems for semiconductor capital equipment. The company plans to offer 5.8 million shares in an expected price range of $12 to $14 to raise about $75 million at an implied market cap of around $307 million. Shares are expected to price Thursday and begin trading Friday on the Nasdaq under the ticker symbol ICHR.

Accelerated Pharma Inc. is a biopharmaceutical firm developing a platinum-based chemotherapy using genomic technology. The company plans to offer 1.89 million shares in an expected price range of $8 to $10 to raise $17 million at an implied market cap of $93 million. Shares are listed only as beginning to trade the week of December 5 and will trade on the Nasdaq under the ticker symbol ACCP.

SenesTech Inc. has developed and is seeking to commercialize a proprietary technology for managing animal pest populations through fertility control. The company plans to offer 2 million shares in an expected price range of $12 to $14 to raise $26 million at an implied market cap of $133 million. Shares are listed only as beginning to trade the week of December 5 and will trade on the Nasdaq under the ticker symbol SNES.