IPO News This Week: ADT Seeks $2 Billion

Investing

Published: January 14, 2018 8:55 am

Last Updated: January 12, 2020 4:30 am

Two companies completed initial public offerings (IPOs) last week and another four are on the calendar for this week, including the first of an expected slew of billion dollar offerings.

Industrial Logistics Properties Trust (NASDAQ: ILPT) raised $480 million last week, selling 20 million shares at $24, well below the expected range of $28 to $31. Shares lost 2.7% on the Friday IPO.

Liberty Oilfield Services Inc. (NYSE: LBRT) raised $216 million by selling 12.7 million shares in an upsized offering that priced at $17, above the expected range. Shares closed up nearly 28% on the Friday IPO.

Through the week ending January 12, IPO ETF manager Renaissance Capital reported that 2 IPOs have priced in the U.S. so far this year, up from none year over year. Total proceeds raised through last week equaled $700 million.

For 2017, Renaissance Capital reported a total of 160 IPOs, up 52% year over year from 105 in 2016. Total 2017 proceeds amounted to $35.5 billion compared with a 2016 total of $18.8 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.

There are four IPOs expected to price in the coming week:

One Madison Corp. is a blank-check company seeking to acquire a consumer products business. The company plans to offer 30 million units at $10 per unit to raise $300 million. Each unit comprises one share of Class A common stock and one-half of a redeemable warrant. Underwriters are Credit Suisse, BofA/Merrill Lynch, and I-Bankers Securities. Units are expected to begin trading Wednesday on the New York Stock Exchange under the ticker symbol UMADU.

ADT Inc. is a security services firm operating in the United States and Canada. The company plans to offer 111.1 million shares in an expected price range of $17 to $19 to raise $2 billion at a market cap of around $13.6 billion. Underwriters include Morgan Stanley, Goldman Sachs, Barclays, Deutsche Bank, RBC Capital Markets, Citi, BofA/Merrill Lynch, Credit Suisse, Imperial Capital, Academy Securities, Allen & Company, Apollo Global Securities, Citizens, LionTree, SunTrust Robinson Humphrey, and Williams Capital Group. Shares are expected to price Thursday and begin trading Friday on the New York Stock Exchange under the ticker symbol ADT.

Americold Realty Trust is a REIT that is the world’s largest owner and operator of temperature-controlled warehouses. The company plans to offer 24 million shares in an expected price range of $14 to $16 to raise $360 million at a market cap of about $2 billion. Underwriters include BofA/Merrill Lynch, J.P. Morgan, RBC Capital Markets, Rabo Securities, Baird, Citizens, Raymond James, SunTrust Robinson Humphrey, BB&T Capital Markets, and BTIG. Shares are set to price Thursday and begin trading Friday on the New York Stock Exchange under the ticker symbol COLD.

Nine Energy Service Inc. is an onshore well completion and production services firm with operations in the United States and Canada. The firm plans to offer 7 million shares in an expected price range of $20 to $23 to raise $150.5 million at a market cap of $501 million. Underwriters include J.P. Morgan, Goldman Sachs, Wells Fargo Securities, BofA/Merrill Lynch, Credit Suisse, Raymond James, Simmons & Co., Tudor Pickering Holt & Co., HSBC Corp., Scotia Howard Weil, and UBS Investment Bank. Shares are expected to price Thursday and begin trading Friday on the New York Stock Exchange under the ticker symbol NINE.