The traditional February lull in initial public offerings (IPOs) enters its second and final week, but a much anticipated offering is on tap for the following week. Last week also saw several new filings that we’ll take a quick look at here.
First, of course, is the scheduled March 2 IPO of Snap, parent of Snapchat, a camera app that wipes the photo or video after the receiver of the message has viewed it. In the company’s filing, it describes itself as “a camera company” and says that “reinventing the camera represents our greatest opportunity to improve the way that people live and communicate.” There are a total of 25 underwriters behind the deal and the company is seeking to raise $3 billion at an expected price range of $14 to $16 for each of 200 million shares. None of the offered shares includes a voting right.
Three oil field services companies that specialize in fracking filed for IPOs last week: Liberty Oilfield Services, FTS International and ProPetro. None of the three has set terms yet. Liberty is based in Denver, Colorado, while ProPetro is headquartered in Midland, Texas, the heart of the Permian Basin, and FTS is based in Fort Worth, Texas.
Other interesting filings from last week include Canada Goose, a Toronto-based maker of high-end parkas and jackets, and JBS International, a Colorado-based subsidiary of the Netherlands-based food processing and packaging giant. Neither firm has yet set terms.
Through the week ending February 10, IPO ETF manager Renaissance Capital reported that 14 IPOs have priced in the United States so far this year, up 250% year over year. Total proceeds raised through last week equaled $4.6 billion. For 2016, Renaissance Capital reported a total of 105 IPOs, down 38% year over year from 170 in 2015. Total 2016 proceeds amounted to $18.8 billion, compared with a 2015 total of $30 billion. 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.
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