Investing

IPOs This Week: Cable Company Altice Leads a Busy Week

Paul Ausick

Published: June 18, 2017 10:30 am

Last Updated: January 12, 2020 10:57 am

Two initial public offerings (IPOs) made it into the public markets last week, with insiders taking about two-thirds of the shares on offer. Next week’s action includes a cable TV operator, three REITs, and three blank-check companies.

Biotech firm Athenex Inc. (NASDAQ: ATNX) raised $66 million selling 6 million shares at $11, the low end of the expected price range. The shares got a first day pop of 14% and closed the week up 26.3%.

Billboard owner Boston Omaha Corp. (NASDAQ: BOMN) raised $85 million in an upsized offering that priced 6.5 million shares at $13, the midpoint of the expected range. Shares got a first-day pop of 1.5% on the Friday offering.

Through the week ending June 16 IPO ETF manager Renaissance Capital reported that 66 IPOs have priced in the U.S. so far this year, up about 74% year over year. Total proceeds raised through last week equaled $17.5 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.

Listed as day-to-day, Avenue Therapeutics Inc. is a specialty pharmaceutical company developing an intravenous treatment for postoperative pain. The company plans to sell 5 million shares in a price range of $9 to $11 to raise $50 million at an implied market cap of $100.1 million. Underwriters are Raymond James and National Securities Corp. Shares are slated to trade on the Nasdaq under the ticker symbol ATXI.

Bison Capital Acquisition Corp. is a Beijing-based blank-check company. The firm plans to raise $50 million by offering 5 million units, each of which comprises one ordinary share, one right, and one-half of one warrant. Sole underwriter of the offering is Cowen & Co. Units are expected to begin trading Tuesday on the Nasdaq under the ticker symbol BCACU.

Altice USA Inc. is a video service and broadband that operates in 21 states with about 4.9 million customers. The company plans to offer 46.6 million shares in an expected price range of $27 to $31 to raise $1.35 billion at an implied market cap of $2.14 billion. Underwriters for the offering include J.P. Morgan, Morgan Stanley, Citi, Goldman Sachs, BofA/Merrill Lynch, Barclays, BNP Paribas, Credit Agricole CIB, Deutsche Bank, RBC Capital Markets, Scotia Capital, Societe Generale, and TD Securities. Shares are expected to price Wednesday and begin trading Thursday on the New York Stock Exchange under the ticker symbol ATUS.

Safety, Income and Growth Inc. is a commercial REIT formed primarily to acquire, own, manage, finance, and capitalize ground net leases. The company plans to sell 10.3 million shares in an expected price range of $19 to $21 to raise $205 million at an implied market cap of $364 million. Underwriters are BofA/Merrill Lynch, J.P. Morgan, Barclays, Citi, Raymond James, and Mizuho Securities. Shares are set to price Wednesday and begin trading Thursday on the New York Stock Exchange under the ticker symbol SFTY.

SG Blocks Inc. modifies cargo shipping containers for use in construction projects. The company plans to offer 1.5 million shares in an expected price range of $5 to $6 to raise $12.1 million at an implied market cap of $21.9 million. Sole underwriter is Joseph Gunnar. Shares are expected to price Wednesday and begin trading Thursday on the Nasdaq under the ticker symbol SGBX.

Four Springs Capital Trust is a REIT that focuses on acquiring, owning, and actively managing single-tenant, income producing retail, industrial, medical, and other office properties in the United States. The company plans to offer 5.6 million shares in an expected price range of $17 to $19 to raise $100 million at an implied market cap of $185 million. Underwriters include RBC Capital Markets, SunTrust Robinson Humphrey, BB&T Capital Markets, Capital One Securities, Ladenburg Thalmann & Co., Wunderlich Securities, Sandler O’Neill, and Boenning & Scattergood. Shares are expected to price Thursday and begin trading Friday on the New York Stock Exchange under the ticker symbol FSPR.

Granite Point Mortgage Trust Inc. is a REIT that originates, invests in, and manages senior floating-rate commercial mortgage loans and other commercial real-estate investments. The company plans to sell 10 million shares in an expected price range of $20 to $21 to raise $205 million at an implied market cap of $886 million. Underwriters are J.P. Morgan, Morgan Stanley, Citi, BofA/Merrill Lynch, JMP Securities, and Keefe Bruyette Woods. Shares are expected to price Thursday and begin trading Friday on the New York Stock Exchange under the ticker symbol GPMT.

Hennessy Capital Acquisition III LLC is a blank check company that plans to raise $225 million by selling 22.5 million units at $10 each. Underwriters include Credit Suisse, Stifel, and I-Bankers Securities. Units will trade on the NYSE Arca exchange under the ticker symbol HCAC.U.

Constellation Alpha Capital Corp. is a blank-check company that plans to raise $125 million by selling 12.5 million units at $10 each. Underwriters are Cowen & Co. and I-Bankers Securities. Units will trade on the Nasdaq under the ticker symbol CNACU.