IPO News This Week: As August Heats Up, Offerings Cool Off

Last week’s initial public offering (IPO) action saw four of five scheduled listings make their entry into the public markets. The four IPOs raised a total of $307 million in new capital, as three of the four priced below the midpoint of their expected ranges. The coming week includes two small offerings seeking a total of $58 million, one a first-timer and one a holdover from last week.

First a brief review of last week’s successful IPOs.

Amalgamated Bank (NASDAQ: AMAL) raised $104 million selling 6.7 million shares at $15.50, near the low-end of the expected range of $15 to $17. Shares dropped 3% on their first trading day but ended the week up 6%.

Spartan Energy Acquisition (NYSE: SPAQU), a blank-check company, raised $480 million selling 48 million units at $10. Units closed the week up 1%.

Pacific City Financial Corp. (NASDAQ: PCB) raised $48 million in a downsized offering of 2.4 million shares at $20, the low end of the expected range. Shares dropped 5% on the first day of trading and closed the week flat.

Mesa Air Group Inc. (NASDAQ: MESA) raised $116 million in a downsized offering of 9.6 million shares priced at $12, well below the expected range of $14 to $16. Shares dropped 2% on the Thursday IPO, and that’s how they closed the week.

Vaccinex Inc. (NASDAQ: VCNX) raised $40 million selling 3.33 million shares at $12, the low end of the expected range. Shares dropped 5% on the Thursday IPO and closed the week down 4%.

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Through the week ending August 10, IPO ETF manager Renaissance Capital reported that 132 IPOs have priced in the U.S. so far this year, up about 44% year over year. Total proceeds raised through last week equaled $34.4 billion, up about 55% 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 two IPOs on this week’s agenda.

Bionano Genomics Inc., a life sciences instrumentation maker selling a proprietary system for next-generation genome analysis, delayed its IPO from last week. The company plans to offer 5.5 million shares in an expected price range of $5 to $6 to raise $30 million at a market cap of $85 million. Underwriters are Roth Capital and Maxim Group LLC. Shares are listed only as “week of” and will trade on the Nasdaq under the ticker symbol BNGO.

Aridis Pharmaceuticals is a late-stage biopharmaceutical firm developing immunotherapies for antibiotic-resistant infections. The company plans to offer 2 million shares in an expected price range of $13 to $15 to raise $28 million at a market cap of $111 million. Underwriters include Cantor Fitzgerald, Maxim Group LLC, Laidlaw & Co. (U.K.), Northland Securities, and The Seaport Group. Shares are expected to price Monday and begin trading Tuesday on the Nasdaq under the ticker symbol ARDS.

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