IPO News This Week: Chinese Firm Seeks $2.25 Billion

By Paul Ausick Updated Jan 12, 2:06AM EST · Published Mar 25, 10:00AM EDT

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IPO News This Week: Chinese Firm Seeks $2.25 Billion — © Thinkstock

While Dropbox Inc. (NASDAQ: DBX) was one of three successful initial public offerings (IPOs) this past week, it was also the largest by a wide margin. Even so, the IPO could be dwarfed by planned offering — one of eight — on tap for this week that is seeking to raise $2.25 billion.

Dropbox raised $725 million selling 36 million shares at $21 per share. The IPO price originally had been set at $16 to $18, and it was raised last week to a new range of $18 to $20. Shares were up 36% on the Friday offering.

Sunlands Online Education Group (NYSE: STG) raised $150 million selling 13 million shares at $11.50, the low end of the expected range. Shares closed down 3% following the Friday IPO.

Golden Bull Ltd. (NASDAQ: DNJR) raised $6 million selling 1.6 million shares at $4 a share, the low end of the expected range. Shares closed up 16% for the week.

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Through the week ending March 23, IPO ETF manager Renaissance Capital reported that 36 IPOs have priced in the United States so far this year, up about 44% year over year. Total proceeds raised through last week equaled $12.2 billion, up 24% year over year.

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.

Here are the eight IPOs on the coming week’s calendar.

Greentree Hospitality is a China-based franchisor of economy and mid-scale hotels. The company plans to offer 19.4 million shares in an expected price range of $16 to $18 to raise $330 million at a market cap of $1.88 billion. Underwriters are Morgan Stanley, Merrill Lynch, UBS Investment Bank and ICBC International. Shares are expected to price Monday and begin trading Tuesday on the New York Stock Exchange under the ticker symbol GHG.

Bilibili is a China-based provider of an anime-themed video and gaming platform. The company plans to offer 42 million shares in an expected price range of $10.50 to $12.50 to raise $483 million at a market cap of $3.2 billion. Underwriters are Morgan Stanley, Merrill Lynch and JPMorgan. Shares are expected to price Tuesday and begin trading Wednesday on the New York Stock Exchange under the ticker symbol BILI.

OneSmart International Education is a China-based premium after-school education provider for grades K–12. The company plans to offer 16.3 million shares in an expected price range of $11 to $13 to raise $196 million at a market cap of $2 billion. Underwriters are Morgan Stanley, Deutsche Bank and UBS Investment Bank. Shares are expected to price Tuesday and begin trading Wednesday on the New York Stock Exchange under the ticker symbol ONE.

OP Bancorp is a California commercial bank that primarily serves Korean-American communities. The company plans to offer 2 million shares in an expected price range of $9.50 to $11.50 to raise $21 million at a market cap of $167 million. Underwriters are Keefe Bruyette Woods and D.A. Davidson. Shares are expected to price Tuesday and begin trading Wednesday on the Nasdaq under the ticker symbol OPBK.

Homology Medicines is a preclinical stage biotechnology firm developing a gene therapy platform for rare diseases. The company plans to offer 6.67 million shares in an expected price range of $14 to $16 to raise $100 million at a market cap of $529 million. Underwriters are Merrill Lynch, Cowen, Evercore ISI and BTIG. Shares are expected to price Wednesday and begin trading Thursday on the Nasdaq under the ticker symbol FIXX.

Ibex is a Bermuda-based firm that supplies outsourced customer support and marketing services. The company plans to offer 4 million shares in an expected price range of $14 to $16 to raise $60 million at a market cap of $243 million. Underwriters are Baird, Piper Jaffray, William Blair and SunTrust Robinson Humphrey. Shares are set to price Wednesday and begin trading Thursday on the Nasdaq under the ticker symbol IBEX.

iQIYI is a China-based online video streaming platform being spun out of Baidu. The company plans to offer 125 million shares in an expected price range of $17 to $19 to raise $2.25 billion at a market cap of $13.67 billion. Underwriters include Goldman Sachs (Asia), Credit Suisse, Merrill Lynch, China Renaissance, Citi and UBS Investment Bank. Shares are expected to price Wednesday and begin trading Thursday on the Nasdaq under the ticker symbol IQ.

Unum Therapeutics is a clinical-stage biopharmaceutical firm developing immunotherapies for cancer. The company plans to offer 5.77 million shares in an expected price range of $12 to $14 to raise $75 million at a market cap of $413 million. Underwriters are Morgan Stanley, Cowen, SunTrust Robinson Humphrey and Wedbush PacGrow. Shares are set to price Wednesday and begin trading Thursday on the Nasdaq under the ticker symbol UNUM.

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About the Author Paul Ausick →

Paul Ausick has been writing for a673b.bigscoots-temp.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.

He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.