The IPO Buzz: Toast Tops a $5.2 Billion Week

Most IPO investors want  Toast, Inc. (TOST proposed) for breakfast this week. Bankers expect to raise about $5.24 billion from “a baker’s dozen” of deals. Twelve of this week’s 13 deals are traditional IPOs while one is a NASDAQ uplift.

Toast, a payments software system that caters to the restaurant industry, helped its restaurant clientele survive the pandemic by offering innovations to make it simpler for them to handle take-out and delivery. This fact impressed investors at Toast’s roadshow last week. (Please see this CNBC story or delve into the Toast prospectus by clicking on the hyperlink in the company’s name, which takes you to the IPO Profile and a link to the latest S-1/A filing.)

Freshworks (FRSH proposed), a customer relationship management software company, and Remitly Global, Inc.(RELY proposed), a global payments company that makes it easier for immigrants to send money home to their families, are also attracting positive buzz.

This week’s IPO Calendar offers something for everyone – plenty of tech deals, along with IPOs from the consumer products, food, online fashion, jewelry and healthcare fields.

The NASDAQ uplift is Argo Blockchain PLC (ARBK proposed), a cryptocurrency play from London.

“At first glance, I like almost everything that’s coming up,” a veteran IPO investor said, noting that his opinion could change, of course, as the week goes along.

Feeling the IPO Love

This year’s pace of initial public offerings is setting up 2021 as another record year.

The Russell indexes are feeling the IPO love, Bloomberg reported with this headline on Friday:

IPO Stocks Break Into Russell Indexes in Biggest Wave in Decade – Bloomberg

The gains by last week’s IPOs are just whetting investors’ appetite to stay in the game, the pros say.

To check out the deals set for pricing this week, please click on the IPO Calendar.

In addition to the 13 deals on the calendar, one small Canadian bank, Versabank, and a handful of SPACs are also expected to get done this week.

September’s Finale

Next week, two big direct listings – Amplitude (AMPL proposed) on Sept. 28 on the NASDAQ and Warby Parker (WRBY proposed) on Sept. 29 on the New York Stock Exchange – are also generating plenty of conversation.

When the SEC’s filing window opens for business on Monday morning, more names are likely to land on the IPO Calendar for the week of Sept. 20 and the following week.

Stay tuned.

(For more information, please check the IPO Calendar and click on a company’s name, which will take you to the IPO Profile and a link to the prospectus.)

(Never trade on proposed symbols. You might wind up owning something on the OTC Bulletin Board.)

Disclosure: Nobody on the IPOScoop.com staff has a position in any stocks mentioned above, nor do they trade or invest in IPOs. The IPOScoop.com staff does not issue advice, recommendations or opinions.

Disclaimer: A SCOOP Rating (Wall Street Consensus of Opening-day Premiums), is a general consensus taken, at press time, from Wall Street and investment professionals concerning how well an IPO might perform when it starts trading. The SCOOP Rating does not reflect the opinions of anyone associated with IPOScoop.com. The SCOOP ratings should not be taken as investment advice. The rating merely reflects the opinion of the professionals at the time of publication and is subject to last-minute changes due to market conditions, changes in a specific offering and other factors, such as changes in the proposed offering terms and the shifting of investor interest in the IPO. The information offered is taken from sources we believe to be reliable, but we cannot guarantee the accuracy.

 

The IPO Buzz: Soaring into September

Wall Street’s September sky is full of IPOs soaring into the wild blue yonder this week.  Five of the seven IPOs that started trading on Wednesday, Sept. 15, jumped 50 percent or more from their IPO prices. Four of those deals popped 60 percent or more in their debuts, with one – DICE Therapeutics (DICE) – more than doubling its IPO price – to score a moonshot.  A total of nine IPOs made their debuts on Wednesday, including two tiny deals – EzFill Holdings (EZFL) and Pasithea Therapeutics (KTTA).  In addition, five SPACs started trading on Wednesday. The session goes down in the IPO annals as the third-busiest trading day of the year, according to Bloomberg.

The trend continued on Thursday. Only two IPOs started trading. ForgeRock, Inc. (FORG) shot up 46 percent from its IPO price of $25 to close Thursday at $36.50 and Enact Holdings, Inc. (ACT) gained 7.8 percent from its IPO price of $19 to close Thursday at $20.49. One SPAC made its debut as well.  Thursday’s deal volume was subdued, which some attributed to the calendar’s date. Yom Kippur, the holiest day in the Jewish year, began at sunset on Wednesday and ended at sunset on Thursday. (Some Wall Street veterans said that in the past, no deals were priced to start trading on Yom Kippur.)

“It’s ‘risk on,’ baby. All the deals are working. The only problem is getting stock,” a veteran IPO pro says.

The IPO market is on track for another record year.  So far, 332 IPOs and 416 unit offerings (mostly SPACs) have been priced in 2021, according to IPOScoop’s 2021 IPO Scorecard. The growing IPO pipeline points to prospects for at least another 100 IPOs to get priced before the end of the year.

In 2020, a total of 465 deals were priced – 219 IPOs and 246 unit offerings (SPACs accounted for most of the unit offerings), IPOScoop records show.

SNOW Time

Snowflake (SNOW), the data cloud company, went public a year ago amid a frenzy of excitement. The IPO, priced at $120, started trading on Sept. 16, 2020, and the stock skyrocketed to $253.93 in its first day of trading.

“I was hoping for SNOW and I only got a few flakes,” one IPO investor said, recalling his disappointment over his small allocation.

Fast forward to Sept. 16, 2021: Snowflake closed at $323.52 – up 169 percent from its IPO price.

Golden Gains

Worth noting: Most of Wednesday’s IPOs were priced above range or at the top of their price range and most were increased in size at pricing as well. Let’s take a look at the seven IPOs that soared in their trading debuts on Wednesday:

*DICE Therapeutics (DICE) – Up 117 percent from its $17 IPO price to close its first day of trading at $36.89; on Thursday, the stock closed at $34.75. DICE Therapeutics is developing a drug to treat psoriasis. DICE is the first moonshot of September. A moonshot occurs when a stock jumps 100 percent or more from its IPO price on the first day of trading.

*PROCEPT BioRobotics (PRCT) – Up 67.76 percent from its $25 IPO price to close its first day of trading at $41.94; on Thursday, the stock closed at $35.91. PROCEPT BioRobotics makes and sells the AquaBeam Robotic System, which is used in minimally invasive urologic surgery to treat benign enlarged prostrate, a condition that affects about 40 million men in the United States.

*Tyra Biosciences (TYRA) – Up 62.5 percent from its $16 IPO price to close its first day of trading at $26; on Thursday, the stock closed at $20.81. Tyra Biosciences’ leading drug candidate, TYRA-300, is a treatment for bladder cancer.

*Definitive Healthcare (DH) – Up 60.33 percent from its $27 IPO price to close its first day of trading at $43.29; on Thursday, the stock closed at $47.22. Definitive Healthcare provides a cloud-based commercial intelligence platform for biopharmaceutical companies, medical device makers, physicians’ groups, hospitals and others in the healthcare sector.

*Dutch Bros, Inc. (BROS) – Up 59.48 percent from its $23 IPO price to close its first day of trading at $36.68; on Thursday, the stock closed at $48.00. Dutch Bros is a drive-through coffee chain, based in Oregon, with a cult following for its coffee and its non-coffee drinks.

*On Holding AG (ONON) – Up 45.83 percent from its $24 IPO price to close its first day of trading at $35; on Thursday, the stock closed at $37.49. On Holding, an athletic shoe company, is backed by tennis icon Roger Federer; he also designed a shoe for the company.

*Thoughtworks Holding, Inc. (TWKS) – Up 39.95 percent from its $21 IPO price to close its first day of trading at $29.39; on Thursday, the stock closed at $31.46. Thoughtworks is a software engineering firm that serves corporate clients.

The average gain for IPOs priced so far in 2021 is 12.32 percent, based on data through the market’s close on Wednesday, Sept. 15, 2021, according to the 2021 IPO Scorecard (see chart on IPOScoop’s home page). In comparison, the NASDAQ Composite Index is up 16.68 percent.

The tally for the week of Sept. 13, 2021, is a total of 19 deals, which breaks down to 12 IPOs and seven blank check companies, also known as special-purpose acquisition companies, or SPACs. Bankers raised a total of about $5.26 billion – about $4.06 billion from the 12 IPOs and about $1.2 billion from the seven SPACs priced this week.

For the month of September so far, 24 deals have been priced – 12 IPOs and 12 SPACs. The first IPO of the month was priced this week. During Labor Day week, there were five deals – all SPACs.

The IPO pipeline also keeps growing at a steady clip with 17 new filings – nine IPOs and eight SPACs – flowing in so far this week at the U.S. Securities and Exchange Commission. (See: IPO Pipeline)

Sour Bet

The week did not begin on such a happy note.  Sportradar Group AG (SRAD), a sports betting data provider based in Switzerland, priced its IPO at $27 on Monday night, Sept. 13.  The stock slid 7.24 percent to close at $25.05 in its NASDAQ debut on Tuesday. Since then, the stock has recovered a bit and is trading at around $26.92 today (Friday, Sept. 17, 2021).

Sportradar attracted a lot of interest, thanks to the star power of its minority investors, basketball legend Michael Jordan and Dallas Mavericks owner Mark Cuban. The IPO had a healthy book. But some IPO investors balked at its valuation.

SPAC Tracker

For the month of September so far: 12 SPACs have gone public, raising $2.06 billion. (Please check out the SPAC profiles via IPOScoop’s IPO Index, which lists deals alphabetically by the company’s name.)

Seven SPACs were priced this week, raising $1.2 billion:

*Priced Monday night to trade Tuesday, Sept. 14: Pacifico Acquisition (PAFOU) – $50 million

*Priced Tuesday night to trade Wednesday, Sept. 15:  Aesther Healthcare Acquisition (AEHAU) – $100 million; CIIG Capital Partners II Corp. (CIIGU) – $250 million; Endurance Acquisition (EDNCU) – $200 million; Sierra Lake Acquisition (SIERU) – $300 million, and WinVest Acquisition (WINVU)- $100 million

*Priced Wednesday night to trade Thursday, Sept. 16: SOAR Technology Acquisition (FLYA.U)- $200 million

Flip back to Labor Day week, the week of Sept. 6, 2021: Five SPACs were priced, raising $860 million. Here’s the SPAC parade for the four trading days after the Labor Day holiday:

*Priced Tuesday night to trade Wednesday, Sept. 8: Banner Acquisition (BNNRU) – $150 million

*Priced Thursday night to trade Friday, Sept. 10: Bannix Acquisition (BNIXU) – $60 million; First Light Acquisition (FLAG.U) – $200 million; Future Health ESG (FHLTU) – $200 million and SILVERspac (SLVRU) – $250 million

Week of Sept. 20, 2021  

Thirteen deals have been scheduled so far for the week of Sept. 20, 2021. This “baker’s dozen” on the IPO Calendar includes 12 traditional IPOs plus one NASDAQ uplift, which is the Argo Blockchain Plc (ARBK proposed) deal.  An  uplift offering  is technically not an IPO.

Names to note on next week’s IPO Calendar:  Toast, Inc. (TOST proposed), which provides software solutions for restaurants, and Remitly Global, Inc. (RELY proposed), a digital payments platform that caters to immigrants sending money to their families in their home countries.

The following week, two direct listings are in the spotlight: Amplitude (AMPL proposed) set for Sept. 28 on the NASDAQ and Warby Parker (WRBY proposed) set for Sept. 29 on the New York Stock Exchange.

Stay tuned.

(For more information, please check the IPO Calendar and click on a company’s name, which will take you to the IPO Profile and a link to the prospectus.)

(Never trade on proposed symbols. You might wind up owning something on the OTC Bulletin Board.)

Disclosure: Nobody on the IPOScoop.com staff has a position in any stocks mentioned above, nor do they trade or invest in IPOs. The IPOScoop.com staff does not issue advice, recommendations or opinions.

Disclaimer: A SCOOP Rating (Wall Street Consensus of Opening-day Premiums), is a general consensus taken, at press time, from Wall Street and investment professionals concerning how well an IPO might perform when it starts trading. The SCOOP Rating does not reflect the opinions of anyone associated with IPOScoop.com. The SCOOP ratings should not be taken as investment advice. The rating merely reflects the opinion of the professionals at the time of publication and is subject to last-minute changes due to market conditions, changes in a specific offering and other factors, such as changes in the proposed offering terms and the shifting of investor interest in the IPO. The information offered is taken from sources we believe to be reliable, but we cannot guarantee the accuracy.

 

 

 

The IPO Buzz: September Show

September promises to be a hectic month, if this morning’s traffic at the SEC is any indication. Six IPOs jumped on the IPO Calendar today for pricing in the week of Sept. 13, 2021, the second full week of the month. Bankers expect to raise $2.79 billion from these six IPOs, if all are priced at the mid-point. The rush of IPO activity was expected, based on the blistering pace of IPOs this year.

This week’s IPO market also got under way – with just one deal scheduled for pricing tonight. Banner Acquisition (BNNRU proposed), a special-purpose acquisition company or SPAC, is set for pricing tonight, to start trading Wednesday on the NASDAQ. BofA Securities is the sole book-runner for this SPAC deal.

Other than the swoosh of filings at the U.S. Securities and Exchange Commission, Wall Street is still fairly quiet today. That’s not unusual for the first work day after the long Labor Day holiday weekend.

Many on  Wall Street are out of the office today for the observance of Rosh Hashanah, the Jewish New Year. For all of our IPOScoop readers and subscribers who are celebrating Rosh Hashanah, we wish you a sweet and healthy 5782!

(Editor’s Note: IPOScoop will update this bulletin with a full IPO Buzz column later this week.)

The IPO Buzz: DoubleDown (DDI) Returns in the Lull Before Labor Day

DoubleDown Interactive (DDI proposed), the South Korean mobile gaming app company, is rolling its digital dice this week. The company’s deal is the only traditional IPO on the IPO Calendar this week – usually one of the slowest weeks for the IPO market in the countdown to the Labor Day holiday weekend.  One tiny NASDAQ uplift deal is also on tap this week.

Most of the buzz is about the IPO pipeline, which has been building up nicely during the IPO market’s traditional August break.  Notable new filings include Dutch Bros Coffee (BROS), an Oregon-based chain of drive-through coffee shops; EngageSmart (ESMT proposed), a Braintree, Massachusetts-based provider of SaaS customer engagement solutions for small and medium businesses and non-profits and large enterprises; Sovos Brands (SOVO proposed) , a Louisville, Colorado-based company that owns fast-growing unique brands, including Rao’s Homemade pasta sauces and noosa yoghurt (this brand spells “yogurt” as “yoghurt”); Sportradar Group AG (SRAD proposed) , a Switzerland-based company that says it is the No. 1 provider of data, content and other products and services to bookmakers and others in the sports betting industry, and Toast (TOST proposed), a cloud-based tech platform that provides mobile and digital payment solutions for the restaurant industry..

Warby Parker (WRBY proposed) made a splash last week with its filing for a direct listing on the New York Stock Exchange. The pioneer in online sales of eyeglasses and contact lenses has selected Goldman Sachs, Morgan Stanley and Allen & Co. as the financial advisors for its direct listing.

Light Week in the Rear-View Mirror

In the past week, four small deals were priced plus three SPACs to produce about $465 million in proceeds. Of those four small deals, two were micro-cap NASDAQ uplifts from the OTCQB tier of the OTC market – authID.ai (Ipsidy) (AUID), $10 million, and Biotricity (BTCY), $15 million – and two were tiny unit offerings of common stock and warrants –  RenovoRx (RNXT), $16.7 million, and SeqLL (SQL) , $13 million. The three special-purpose acquisition company (SPAC) deals together raised a total of $410 million: Cascadia Acquisition Corp. (CCAIU), $150 million; Minority Equality Opportunities Corp. (MEOAU), $110 million, and Springwater Special Solutions Corp. (SWSSU), $150 million.

Meanwhile, just two deals are on the IPO runway this week. Both are set for pricing Monday night, to start trading Tuesday. Some IPO professionals also expect a handful of SPACs to get priced this week, based on the flow of filings at the SEC’s window.

Pricing Monday night for Tuesday trading:

DoubleDown Interactive (DDI proposed) is back on track to price its IPO of 6.32 million American Depositary Shares (ADS) at $18 to $20. The deal would raise $120.08 million, if priced at the mid-point.

The South Korean company upsized its IPO and changed underwriters in an SEC filing on July 20, 2021, which came just five days after DoubleDown officially withdrew the IPO that had been postponed a little more than a year ago in late June 2020.

B. Riley Securities is the sole book-runner. CBRE and Northland Capital Markets are the co-managers.

DoubleDown Interactive, headquartered in the Gangnam Finance Center in Seoul, says its mission is to become one of the world’s leading global gaming companies. The company creates multi-format interactive games for casual players on mobile and web platforms.

“Our flagship game, DoubleDown Casino, has been in the top 20 grossing mobile games annually on the Apple App Store since 2016, according to App Annie ,” the prospectus says.

Focus Universal (FCUV proposed) is a NASDAQ uplift from the OTCQB tier of the OTC market. This deal consists of only 2 million shares at an assumed offering price of $5.00 each.

Boustead Securities is the sole book-runner.

Focus Universal, based in Ontario, California, says it has developed “four fundamental disruptive proprietary technologies which we believe solve the most fundatmental problems plaguing the Internet of Things (“IoT”) industry by:

-Increasing overall chip integration by shifting it to the device level;

-Creating a faster 5G cellular technology by using ultra-narrowband technology;

-Leveraging ultra-narrowband power line communication (“PLC”) technology, and

-User Interface Machine auto generation technology.

Labor Day Week

The IPO Calendar is blank for the week of Sept. 6, 2021, which starts with the U.S. holiday of Labor Day. The U.S. stock markets will be closed that day, which marks the end of summer. It’s possible that some deals may land on the calendar for pricing during this four-day work week, depending on the traffic at the U.S. Securities and Exchange Commission’s filing window.

Stay tuned.

(For more information about these companies, please click the hyperlinks, which will take you to the IPO profiles on IPOScoop.com.)

 

(Never trade on proposed symbols. You might wind up owning something on the OTC Bulletin Board.)

Disclosure: Nobody on the IPOScoop.com staff has a position in any stocks mentioned above, nor do they trade or invest in IPOs. The IPOScoop.com staff does not issue advice, recommendations or opinions.

Disclaimer: A SCOOP Rating (Wall Street Consensus of Opening-day Premiums), is a general consensus taken, at press time, from Wall Street and investment professionals concerning how well an IPO might perform when it starts trading. The SCOOP Rating does not reflect the opinions of anyone associated with IPOScoop.com. The SCOOP ratings should not be taken as investment advice. The rating merely reflects the opinion of the professionals at the time of publication and is subject to last-minute changes due to market conditions, changes in a specific offering and other factors, such as changes in the proposed offering terms and the shifting of investor interest in the IPO. The information offered is taken from sources we believe to be reliable, but we cannot guarantee the accuracy.

 

The IPO Buzz: Summer Break

No IPOs were scheduled for pricing this week – a sign that the IPO market is taking its traditional August break. The late summer slowdown traditionally begins around mid-August and usually lasts until about a week after the Labor Day holiday.  In the coming days and the next few weeks,  there may be a few small-cap deals,  uplistings (also known as “uplifts”) and a handful of SPACs or blank-check deals.  But for all practical purposes, the IPO market is in slowdown mode.

One SPAC – Waverley Capital Acquisition Corp. I (WAVC.U) – was priced Thursday night, Aug. 19, 2021; the stock and warrants started trading Friday, Aug. 20, 2021, on the New York Stock Exchange. Evercore ISI and Morgan Stanley were the joint book-runners.

Final Full Week of August

The IPO Calendar is blank for the week of Aug. 23, 2021, which will be the final full week of August. This is the second week in a row with no IPOs scheduled for pricing. Some IPO bankers are working behind the scenes on SEC filings to build the IPO pipeline for the fall. But most Wall Street bankers – and IPO investors – appear to be stepping away from their screens to enjoy the final days of summer.

We wish all of our IPOScoop readers and subscribers a safe and happy August break!

(Editor’s Note: This column was updated Friday afternoon to include the pricing of one SPAC IPO this week and to note that next week’s IPO Calendar is blank so far.)

The IPO Buzz: ELYM Leaps, SSBK Gains & FINW Postponed

(Editor’s Note: This column was updated Thursday afternoon with the postponement of FinWise Bancorp and the closing price of Southern States Bancshares on its first day of trading.)

Eliem Therapeutics (ELYM) jumped on Tuesday in its NASDAQ debut, opening at $16.25 – up 30 percent from its $12.50 IPO price. The biotech trimmed its IPO’s price to $12.50 on Monday morning for pricing that night, after some IPO investors balked last week at its initial price range of $17 to $19. As the week began, Eliem Therapeutics’ IPO and two small bank deals made up the IPO Calendar. One of those bank deals – Southern States Bancshares (SSBK) – was priced Wednesday night at the low end of its range. The other bank IPO – FinWise Bancorp (FINW proposed) – was postponed Thursday afternoon. It’s a sign that the IPO market is winding down for the traditional August break after July’s red-hot pace. IPO professionals say it’s time to step back after the postponement of several deals in the past two weeks.

Four IPOs were postponed last week, while three IPOs were postponed during the week of July 26.

“There’s a message there,” a seasoned IPO pro says. “The valuations are off, for one thing. When you see this happening, the IPO window normally closes for a week or two.”

Disappointment roiled the IPO market last week when most retail investors did not get stock in Weber, Inc.’s (WEBR) IPO, after the number of shares was cut drastically and the IPO was priced well below range. Shares of Weber popped on the iconic grill brand’s first day of trading as a public company.

The traditional summer slowdown in the IPO market usually runs from mid-August until Labor Day – or perhaps the week after that holiday. A year ago, bankers did not stop. Instead, the pace seemed to pick up in August and accelerated again in mid-September. That set the stage for 2020 going down in IPO history as a record year – until this year, that is.

“I’m ready for a break,” a veteran IPO trader says.

All told, bankers expect to raise $172.8 million from the three IPOs on tap so far to price during the week of Aug. 9. Let’s take a look.

Biotech IPO Priced  Monday Night

Eliem Therapeutics  (ELYM) priced its revised IPO on Monday night by increasing the number of shares to 6.4 million, up from 6 million in its revised prospectus, and pricing the stock at $12.50 to raise $80 million. The stock started trading  at 12:58 p.m. EDT Tuesday on the NASDAQ at $16.25 – up $3.75 – on volume of 133,509 shares.

“They’re starting to price these deals right,” a veteran IPO pro said, referring to Eliem’s pop at the opening.

Shares of Eliem Therapeutics closed on Tuesday at $15.90, up 27.2 percent from their IPO price on their first day of trading.

The clinical biotech’s small-cap IPO was revised early Monday morning with an increase in the number of shares – to 6 million, up from 4.5 million initially – while the price was cut to $12.50, down from its initial range of $17 to $19. (The IPO was originally scheduled for pricing on Thursday night, Aug. 5, 2021. If the IPO had been priced at the $18 mid-point of its initial range, the deal would have raised $81 million.)

SVB Leerink, Evercore ISI, Stifel and Guggenheim Securities are the joint book-runners.

Eliem Therapeutics, based in Redmond, Washington, has two lead clinical-stage drug candidates:

  • ETX-810 to treat the chronic pain of two conditions – diabetic peripheral neuropathy and sciatica – in two Phase 2a clinical trials expected to report topline data in the first half of 2022.
  • ETX-155 to treat major depression, peri-menopausal depression and photosensitive epilepsy (by targeting focal onset seizures, the most common type of seizures experienced by people with epilepsy) – The company plans to start two Phase 2a clinical trials for this drug as an anti-depressive treatment, with topline data expected in the first half of 2023. Eliem also plans to start a Phase 1b clinical trial in patients with photosensitive epilepsy with topline data expected in the first half of 2022.

 Southern States Bancshares Priced Wednesday Night

 A traditional Alabama-based community bank holding company and a Utah-based digital bank were scheduled to price their IPOs on Wednesday night. Both companies expected their stock to start trading Thursday on the NASDAQ.

Southern States Bancshares, Inc. (SSBK), a bank holding company based in Anniston, Alabama, priced its IPO on Wednesday night (Aug. 11, 2021) at $19 – the low end of its $19 to $21 range – on 2 million shares, the number of shares in the prospectus, to raise $38 million. Southern States Bancshares’ stock closed Thursday at $19.77, up 4.05 percent from its IPO price.

The company’s flagship subsidiary, Southern States Bank, provides community banking services from 15 offices in Alabama and Georgia.

Keefe, Bruyette & Woods and Truist Securities were the joint book-runners.

Worth noting: Of the 2 million shares in the IPO, Southern States Bancshares offered 996,429 shares and the selling stockholders offered another 1,003,571 shares.

FinWise Bancorp Postponed

The pricing of FinWise Bancorp (FINW proposed) was postponed Thursday afternoon “due to market conditions,” according to Wall Street sources. As of Thursday morning, the deal had been pushed back for possible pricing on Thursday night. (The deal was initially set for pricing Wednesday night.) On Wednesday morning, Aug. 11, 2021,  the bank holding company amended its Free Writing Prospectus in an SEC filing to disclose that a lawsuit had been filed on Aug. 10, 2021, against its flagship bank, FinWise Bank, and its Strategic Program partner, Opportunity Financial.

FinWise Bancorp (FINW proposed) is headquartered in Murray, Utah, south of Salt Lake City. The bank holding company’s subsidiary, FinWise Bank, markets itself as a digital community bank. FinWise Bank is one of the most active Small Business Administration lenders, according to the SBA’s website. The bank, however, has been the subject of consumer groups’ protests over its consumer loans – in partnership with Opportunity Financial, a non-bank lender – to individuals at interest rates ranging from 8 percent to 160 percent.

Worth noting: Utah’s payday loan rates are 2nd highest in America. Only Texas is higher. (sltrib.com)

This was a small-cap IPO of 4.13 million shares at $13 to $15 with estimated proceeds of $57.8 million, if the deal had been priced at the mid-point.

Piper Sandler is the sole book-runner. Stephens, Inc. is the co-manager.

Three SPACs Priced Monday Night

The steady stream of SPAC pricings continued Monday night: Conyers Park III Acquisition Corp. (CPAAU) raised $350 million, while Avista Public Acquisition Corp. II (AHPAU) raised $200 million, and Abri SPAC I (ASPAU) raised $50 million. All three SPAC deals were priced in line with the terms in their prospectuses.

Six SPACs Priced Tuesday Night

Bankers priced six SPAC IPOs on Tuesday night, raising a total of $1.06 billion: 10X Capital Venture Acquisition Corp. II (VCXAU) – $200 million; Chardan NexTech Acquisition 2 Corp. (CNTQU) – $110 million; Decarbonization Plus Acquisition Corp. IV (DCRDU) – $275 million; Pono Capital Corp. – $100 million; TPB Acquisition Corp. I – $175 million, and World Quantum Growth Acquisition Corp. (WQGA.U) – $200 million.

Three SPACs Priced Wednesday Night 

Another three SPAC IPOs made it out of the pricing gate on Wednesday night, raising a total of $400 million: AfterNext HealthTech Acquisition Corp. (AFTR.U) – $250 million; Oxbridge Acquisition (OXACU) – $100 million, and PHP Ventures Acquisition Corp. (PPHPU) – $50 million.

Five SPACs Priced Thursday Night

On Thursday, five more SPACs were priced with a total of about $840 million: Armada Acquisition Corp. I – $150 million; AxonPrime Infrastructure Acquisition Corp. – $150 million; CENAQ Energy Corp. – $150 million; Jupiter Acquisition Corp. – $150 million, and Kensington Capital Acquisition Corp. V – $240 million.

Week of Aug. 16

The IPO Calendar is blank for the third week of August. The IPO pros believe that the market is ready for its August break this year.

Stay tuned.

(For more information, please check the IPO Calendar and click on a company’s name, which will take you to the IPO Profile and a link to the prospectus.)

(Never trade on proposed symbols. You might wind up owning something on the OTC Bulletin Board.)

Disclosure: Nobody on the IPOScoop.com staff has a position in any stocks mentioned above, nor do they trade or invest in IPOs. The IPOScoop.com staff does not issue advice, recommendations or opinions.

Disclaimer: A SCOOP Rating (Wall Street Consensus of Opening-day Premiums), is a general consensus taken, at press time, from Wall Street and investment professionals concerning how well an IPO might perform when it starts trading. The SCOOP Rating does not reflect the opinions of anyone associated with IPOScoop.com. The SCOOP ratings should not be taken as investment advice. The rating merely reflects the opinion of the professionals at the time of publication and is subject to last-minute changes due to market conditions, changes in a specific offering and other factors, such as changes in the proposed offering terms and the shifting of investor interest in the IPO. The information offered is taken from sources we believe to be reliable, but we cannot guarantee the accuracy.

 

 

The IPO Buzz: Barbecue, Drugs, Bullets and Bikini Wax

Weber, Inc. (WEBR), the iconic grill brand, priced its IPO tonight at $14 – below its $15-to-$17 range – on 17.86 million shares – to raise $250 million. The pricing terms represented a cut of 67 percent in the deal’s size. Weber was the only household name on this week’s slim IPO Calendar – and the talk about its sizable IPO had run as hot and cold as a fledgling barbecue cook’s attempt to get the fire and the diablo sauce just right.  Meanwhile, drugs accounted for half of the week’s eight deals, while a bullets manufacturer and a bikini wax franchiser rounded out the list. (More on that in just a moment.) Another IPO – a vitamin and health supplements company – was postponed last night, just ahead of its expected pricing; The Better Being Company (BBCO proposed) IPO had been scheduled to start trading today (Wednesday, Aug. 4, 2021).

Bankers were aiming to raise about $2.9 billion from the seven remaining deals, as of Wednesday night. After two deals were postponed “due to market conditions” on Thursday morning, the week’s estimated IPO proceeds were trimmed to about $1.6 billion. (That total figure for estimated proceeds does not include the amount raised by a handful of SPACs and a tiny NYSE uplift deal that were priced this week.)

European Wax Center, Inc. (EWCZ) grabbed the door prize for the first traditional IPO priced this week. The franchisor of hair-removal salons priced its IPO tonight (Wednesday, Aug. 4) of 10.6 million shares at $17 – above the mid-point of its $15-to-$18 range. The stock opened Thursday at $19 – up $2 from its IPO price – and ended its first day of trading on the NASDAQ at $21.39, up 25.82 percent. (For those who may be curious, a bikini wax costs up to $42, while a Brazilian wax costs up to $59, according to the website of a European Wax Center salon in Plano, Texas, where the newly public company is headquartered.)

Morgan Stanley, BofA Securities and Jefferies were the joint book-runners of the European Wax Center IPO.

Dueling Grill Brands

Weber (WEBR) attracted a lot of attention with its IPO plans in July. Its founder, George Stephen, Sr., invented the original charcoal grill in 1952. This brand is known for quality.

“I’d be lost without my Weber grill,” one Wall Street pro says.

IPO professionals initially picked the Weber IPO as “the deal of the week” because of the brand’s name recognition and the successful IPO last week of Traeger (COOK), a wood pellet grill with a cult following.

But the word on the Street was that enthusiasm for the deal began to cool somewhat about a day ahead of its pricing. Some traders even wondered out loud today: “Do we really need two grill brands going public in a row?”

The answer to that question came soon enough. The IPO was cut sharply at pricing, a result that The Wall Street Journal called “disappointing.”

The prospectus for Weber’s IPO called for 46.9 million shares to be sold $15 to $17. The IPO’s proceeds had been estimated at $750 million, if the deal had been priced at the $16 mid-point of its range.

Goldman Sachs, BofA Securities, J.P. Morgan, BMO Capital Markets, Citigroup, UBS Investment Bank, Wells Fargo Securities and KeyBanc Capital Markets are the joint book-runners for Weber’s IPO.

On Thursday, Weber’s stock opened at $17 – up from its $14 IPO price – and closed its first day of trading at $16.50, up 17.86 percent.

Testing Drugs, Minting Money

Four IPOs in various areas of the pharmaceuticals business are in the offing this week.

WCG Clinical (WCGC proposed), which provides software and other clinical trial support services to biopharmaceutical companies, academic institutions and contract research organizations, postponed its IPO on Thursday morning, Aug. 5th, the day that its stock was expected to start trading on the NASDAQ. The IPO’s terms were 45 million shares at $15 to $17, according to the prospectus.

Goldman Sachs, Morgan Stanley, BofA Securities/ Barclays/ Jefferies, William Blair, BMO Capital Markets, UBS Investment Bank, SVB Leerink and HSBC were the joint book-runners of the IPO.

WCG Clinical says its services help drug companies control the cost and streamline the efficiency of setting up clinical trials, which can speed up the process of getting new drugs to market.

Three of this week’s four drug-centered IPOs were scheduled to price Thursday night and start trading on Friday, Aug. 6:

Healthcare Royalty, Inc. (HCRX proposed), a company that specializes in mid-sized acquisitions of drug royalty payments. This IPO of 46.9 million shares at $15 to $17 is being managed by joint book-runners Goldman Sachs, Citigroup, Credit Suisse, Jefferies, Cowen and SVB Leerink.

Adagio Therapeutics (ADGI proposed), a clinical-stage biopharmaceutical company that is evaluating an antibody to treat and prevent COVID-19 and coronavirus variants. This IPO of 17.7 million shares at $16 to $18 is being managed by joint book-runners Morgan Stanley, Jefferies, Stifel and Guggenheim Securities.

Eliem Therapeutics (ELYM proposed), a clinical-stage biopharmaceutical company that is evaluating two leading drug candidates – one drug candidate to treat the chronic pain of diabetic peripheral neuropathy and sciatica – and another drug candidate to treat major depression, peri-menopausal depression and focal-onset seizures, the most common type of seizures experienced by people with photosensitive epilepsy. This IPO of only 4.5 million shares at $17 to $19 is being managed by joint book-runners SVB Leerink, Evercore ISI, Stifel and Guggenheim Securities.

Adagio Therapeutics upsized its IPO at pricing on Thursday night, Aug. 5th, to 18.2 million shares, up from 17.7 million in the prospectus, and priced the IPO at $17 – the mid-point of its $16-to-$18 range.

Shares of Adagio Therapeutics jumped to $21 – up $4 or 23.52 percent from their $17 IPO price – when they started trading Friday morning on the NASDAQ.

Healthcare Royalty postponed its IPO indefinitely “due to market conditions” on Friday morning, Aug. 6, 2021, the day that its stock was expected to start trading on the NASDAQ. 

The word was out on Wall Street that Eliem Therapeutics may get priced Friday morning, but some IPO experts were noting that the pricing was now “day by day.”

Body Armor and Ammo

Cadre Holdings (CDRE proposed), the parent of the Safariland brand of bullet-proof vests, ammunition, holsters and other law enforcement gear,  postponed its IPO “due to market conditions” on Thursday morning, Aug. 5th, the day that its stock was expected to start trading on the New York Stock Exchange. The IPO’s terms were 7.1 million shares at $16 to $19, according to the prospectus.

State and local police departments, firefighters, EMTs and corrections departments (jails and prisons) are Cadre’s clients, along with federal agencies, including the U.S. State Department, the U.S. Justice Department and the U.S. Department of Homeland Security.

Stifel, Raymond James, Truist Securities and Stephens, Inc. were the joint book-runners of Cadre’s IPO.

Bank On It

A small bank offering – an uplift to the NASDAQ from the OTC – was priced Wednesday night. Orange County Bancorp (OBT) upsized its IPO to 1 million shares, up from 900,000 shares, and priced the stock at $33.50, the mid-point of its $32-to-$35 range.

Piper Sandler and Stephens, Inc., were the joint book-runners.

Bank sector investors played this deal, of course, although other IPO investors also hoped to get some stock.

Shares of Orange County Bancorp opened Thursday at $33.80 and ended their first day of trading on NASDAQ at $34.10, up 1.79 percent from their $33.50 IPO price.

Second Week of August

Just two deals have been scheduled for the week of Aug. 9, 2021, and both are from small banking companies. The second week of August is the time when the IPO market usually begins to slow down. (August 2020 was a notable exception to that rule.) So far this week, it looks like IPO bankers may be getting ready to take a break after a scorching July.

Stay tuned.

(Editor’s Note: The column was updated Friday morning with the Adagio Therapeutics pricing and the postponement of Healthcare Royalty. On Thursday morning, the column was updated with the postponement of two IPOs – WCG Clinical (WCGC proposed) and Cadre Holdings (CDRE proposed) –  and the pricing Wednesday night of the Orange County Bancorp (OBT) IPO.)

(For more information, please check the IPO Calendar and click on a company’s name, which will take you to the IPO Profile and a link to the prospectus.)

(Never trade on proposed symbols. You might wind up owning something on the OTC Bulletin Board.)

Disclosure: Nobody on the IPOScoop.com staff has a position in any stocks mentioned above, nor do they trade or invest in IPOs. The IPOScoop.com staff does not issue advice, recommendations or opinions.

Disclaimer: A SCOOP Rating (Wall Street Consensus of Opening-day Premiums), is a general consensus taken, at press time, from Wall Street and investment professionals concerning how well an IPO might perform when it starts trading. The SCOOP Rating does not reflect the opinions of anyone associated with IPOScoop.com. The SCOOP ratings should not be taken as investment advice. The rating merely reflects the opinion of the professionals at the time of publication and is subject to last-minute changes due to market conditions, changes in a specific offering and other factors, such as changes in the proposed offering terms and the shifting of investor interest in the IPO. The information offered is taken from sources we believe to be reliable, but we cannot guarantee the accuracy.

 

The IPO Buzz: Robinhood Lays An Egg

Robinhood Markets (HOOD) started trading today at $38 – flat with its IPO price at the low end of its $38-to-$42 range. The online broker’s debut on NASDAQ was a much more muted performance than some on the Street had expected. The stock briefly spiked – hitting an intraday high at $40.25 – and then quickly slid – breaking issue price and hitting an intraday low of $33.35 before bouncing back to around $36 – down 5 percent from its IPO price. Robinhood closed on Thursday at $34.82, down 8.37 percent from its IPO price and a broken deal on its first day of trading.

“We’re in it for the long haul. We’re not concerned about the moment to moment,” co-founder and CEO Vlad Tenev told Bloomberg TV’s Emily Chang in a live interview shortly before midday.

Tenev was sanguine when Chang asked him about Robinhood’s regulatory issues, including the company’s disclosure this week that FINRA is investigating the company due to Tenev and co-founder Baiju Bhatt not being registered with FINRA.

“I’m the CEO of the holding company,” Tenev said, noting that people working for Robinhood Financial and Robinhood Securities are licensed.

Robinhood’s IPO – one of the most highly anticipated of the year – raised about $2.09 billion. The company sold 55 million shares, the full amount in its prospectus, at $38 – with Robinhood customers getting about 20 percent of the stock.

Duolingo and Riskified Jump

In contrast to Robinhood’s opening-day performance, the IPOs of Duolingo (DUOL) and Riskified (RSKD) delivered strong gains in their debuts as publicly traded companies. Duolingo and Riskified were viewed as “the deals of the week” by IPO professionals.

Duolingo, the popular mobile app for learning languages, opened Wednesday at $141.40 – up 38.6 percent from its IPO price at $102, which was above its increased price range of $95 to $100. The IPO, which was a sliver deal with just 5.1 million shares, closed its first day of trading at $139.01 – up 36.3 percent from its IPO price. Duolingo traded at around $138.28 today (Thursday, July 29, 2021) and closed at $134.44.

Riskified, the Israeli fraud-management platform for online merchants, began trading today at $27 – up 28.6 percent from its IPO price of $21, which was above its $18-to-$20 range. The stock traded at around $26.15 in the early afternoon and closed today at $26, up 23.81 percent from its IPO price.

Hello, Moonshot

Icosavax (ICVX), a biotech developing vaccines targeting pneumonia in elderly people, scored a moonshot today. The IPO was priced at $15 – and the stock opened at $29. Icosavax traded  in the early afternoon at $39.14 – up 160.9 percent from its IPO price. The stock closed at $34.97, up 133.13 percent from its IPO price. The Icosavax IPO was upsized to 12.1 million shares,  up from 10 million in the prospectus, and the $15 pricing was at the mid-point of its $14-to-$16 range.

Tonight’s IPO pricing roster includes 11 deals – eight biotech deals (seven IPOs and one uplift from the AIM) along with Dole plc (DOLE proposed) and two blank-check IPOs, also known as special-purpose acquisition company (SPAC) IPOs. Rox Financial (ROXA proposed), a novel REIT with just one property, an Amazon leased warehouse in the San Francisco Bay area, rescheduled its IPO from tonight to next week’s IPO Calendar .

The pricings tonight will wrap up one of the busiest IPO weeks in more than 20 years – with about 30 deals and estimated volume of more than $9 billion in the offing.

First Week of August

Next week’s IPO Calendar has six IPOs so far – a pace that some on the Street will welcome after the red-hot marathon of mid- to late July.

Stay tuned.

(For more information, please see the  IPO Calendar. You can click the hyperlinks on company names on the IPO Calendar and those links will take you to the IPO profiles on IPOScoop.com.)

(Never trade on proposed symbols. You might wind up owning something on the OTC Bulletin Board.)

Disclosure: Nobody on the IPOScoop.com staff has a position in any stocks mentioned above, nor do they trade or invest in IPOs. The IPOScoop.com staff does not issue advice, recommendations or opinions.

Disclaimer: A SCOOP Rating (Wall Street Consensus of Opening-day Premiums), is a general consensus taken, at press time, from Wall Street and investment professionals concerning how well an IPO might perform when it starts trading. The SCOOP Rating does not reflect the opinions of anyone associated with IPOScoop.com. The SCOOP ratings should not be taken as investment advice. The rating merely reflects the opinion of the professionals at the time of publication and is subject to last-minute changes due to market conditions, changes in a specific offering and other factors, such as changes in the proposed offering terms and the shifting of investor interest in the IPO. The information offered is taken from sources we believe to be reliable, but we cannot guarantee the accuracy.

 

The IPO Buzz: Sight Sciences & F45 Priced on an 8-IPO Night

Sight Sciences Inc. (SGHT proposed) increased its IPO’s size early Wednesday morning – and priced it Wednesday evening at $24, the top of its new $23-to-$24 range, on 10 million shares. The vision-focused medical device maker’s deal is among a dozen healthcare IPOs on the IPO Calendar this week. Healthcare is the theme of the week. Bankers expect to raise more than $4.2 billion in a roster of about 20 deals.

Fitness, finance and the post-pandemic party scene also appeared on this week’s IPO playlist. Eight IPOs were priced Wednesday night, ranging from Sight Sciences to F45 Training, the fitness company, and Membership Collective Group, better known as Soho House. A grocery-focused shopping center REIT, Phillips Edison & Co., Inc., along with two more healthcare deals – Rapid Micro Biosystems, Inc. and Sera Prognostics – and two SPACs – a tiny tech SPAC, TradeUP Acquisition Corp., plus a green energy SPAC, CleanTech Acquisition Corp. – also were priced on Wednesday night.

F45 Training Holdings Inc. (FXLV proposed), a fitness training franchise company backed by actor Mark Wahlberg, priced its IPO on Wednesday night at $16 – the mid-point of its $15-to-$17 range – on 20.3 million shares. Up to 3 percent of the stock in this IPO was offered to retail investors through Robinhood, according to the prospectus. Goldman Sachs and J.P. Morgan were the joint book-runners. The shares are set to start trading on Thursday on the New York Stock Exchange. The Austin, Texas-based company is a fitness training franchise that offers 45-minute intensity, interval and functional training.

Phillips Edison & Co. (PECO proposed), a dividend-paying REIT, priced its IPO on Wednesday night at $28 – the low end of its $28-to-$31 price range – on 17 million shares. Morgan Stanley, BofA Securities, J.P. Morgan, BMO Capital Markets, Goldman Sachs, KeyBanc Capital Markets, Mizuho Securities and Wells Fargo Securities were the joint book-runners. Phillips Edison, based in Cincinnati, owns or holds interests in 300 neighborhood shopping centers anchored by grocery stores.

The post-pandemic party scene was represented this week by Membership Collective Group (MCG proposed), the parent of Soho House, a global network of private clubs. The Soho House IPO was priced Wednesday night at $14 – the bottom of its $14-to-$16 price range – on 30 million shares, the same number of shares in the prospectus. J.P. Morgan, Morgan Stanley, BofA Securities, Goldman Sachs and HSBC were the joint book-runners of the Soho House deal.

Here’s Looking At You

Sight Sciences makes two commercial products to treat two of the most common eye diseases, glaucoma and dry eye disease:

  • The OMNI Surgical System, a handheld single-use therapeutic device that lets eye surgeons reduce intraocular pressure in the eyes of adult glaucoma patients, and
  • The TearCare System, a wearable open-eye device to apply localized heat to eyelids to relieve dry eye.

Glaucoma is a leading cause of blindness. Dry eye disease (DED) can damage the cornea and impair vision, if it’s left untreated.

Sight Sciences, based in Menlo Park, California, raised the size of its IPO to 10 million shares, up from 7 million, and increased the price range to $23 to $24 – up from $20 to $23 – in an S-1/A filing early Wednesday morning, reflecting the strong demand for the deal. (Source: S-1/A filing dated July 14, 2021.) The stock is expected to start trading Thursday on the NASDAQ.

“Increase a deal. Double my order,” is the Wall Street adage that will sound familiar to those who have followed John E. Fitzgibbon, the founder and editor of IPOScoop, for years.

Morgan Stanley, BofA Securities, Citigroup and Piper Sandler are the joint book-runners.

Six deals – all from the healthcare sector – landed on the IPO Calendar on Monday morning. Those deals were launched Monday after filing terms with the SEC, where the traffic  looked like I-95 just ahead of a holiday weekend.  The flurry of filings on Monday morning expanded the IPO Calendar from its lineup of 10 deals (including one SPAC) at the market’s close on Friday, July 9th.

Rapid Micro Biosystems, a provider of microbial quality control for drug manufacturing, was among the new faces on this week’s IPO Calendar.

Rapid Micro Biosystems (RPID proposed), based in Lowell, Massachusetts, upsized its IPO at pricing on Wednesday night to 7.92 million shares, up from 6.6 million shares, at $20 – the top of its $18-to-$20 range. The deal raised $158.4 million. The stock is expected to start trading Thursday on the NASDAQ. J.P. Morgan, Morgan Stanley, Cowen and Stifel were the joint book-runners of the Rapid Micro Biosystems IPO.

Rapid Micro Biosystems provides an automated microbial quality control (MQC) platform to help ensure faster, more accurate and safer manufacturing of drugs, vaccines, biologics, cell and gene therapies and sterile injectables.

Sera Prognostics (SERA proposed) priced its IPO on Wednesday night at $16 – the mid-point of its $15-to-$17 price range – on just 4.7 million shares, the same number of shares in the prospectus. The deal raised $75 million. The stock is set to start trading Thursday on the NASDAQ. Citigroup, Cowen and William Blair are the joint book-runners.

This small company, based in Salt Lake City, Utah, is developing its first commercial product, the PreTRM test, which it describes as the only broadly validated and commercially available blood-based biomarker test to accurately predict the risk of a premature delivery, also known as a preterm birth.

Worth noting: Sera Prognostics has a collaboration with Anthem, Inc., the nation’s second-largest health insurer, with more than 43 million members.

A micro-SPAC – TradeUP Acquisition (UPTDU proposed) – was priced Wednesday night. The deal had been floating around in the wings for quite awhile. This is a tech-focused SPAC. The IPO consisted of just 4 million units, priced at $10 each, to trade on the NASDAQ. Tiger Brokers, EF Hutton and R.F. Lafferty & Co. are the joint book-runners.

A clean energy SPAC – CleanTech Acquisition (CLAQU) – also was priced Wednesday night in sync with its recently downsized terms: 15 million units at $10 each to raise $150 million. Chardan was the sole book-runner. 

Healthcare IPOs Coming Thursday Night 

Stevanato Group S.p.A. (STVN proposed), based in Padua, Italy, is offering 40 million shares at $21 to $24 each. The IPO is set for pricing Thursday night. The stock is expected to start trading Friday on the New York Stock Exchange. This IPO is the week’s biggest deal, in terms of estimated proceeds; it would raise $900 million, if priced at the mid-point of its range.

Morgan Stanley, BofA Securities and Jefferies are the joint book-runners.

The Stevanato IPO has stirred fairly healthy interest from healthcare investors and retail investors alike. Founded in 1949, Stevanato makes glass containers for drugs, vaccines, biologics and sterile injectables.

Imago BioSciences, Inc. (IMGO proposed) is topping some biotech investors’ shopping lists. This is  a San Francisco biopharma company whose lead drug candidate is in clinical trials to treat patients with cancer of the bone marrow. This is a modest deal – only 7 million shares at $14 to $16. Jefferies, Cowen, Stifel and Guggenheim Securities are the joint book-runners.

The other four healthcare IPOs set for pricing Thursday night, to trade Friday, July 16th, are:

Dynacure S.A. (DYCU proposed) – a French biotech developing an orphan drug to treat rare genetic disorders involving severe muscle weakness – is offering 6.3 million shares at $15 to $17. J.P. Morgan, BofA Securities and Wells Fargo Securities are the joint book-runners.

Erasca (ERAS proposed) – a San Diego biopharma developing cancer-fighting drugs – is offering 17.5 million shares at $14 to $16. J.P. Morgan, Morgan Stanley, BofA Securities, Evercore ISI and Guggenheim Securities are the joint book-runners.

Perspectum Group plc (SCAN proposed) – a British life sciences company whose flagship AI-driven product is LIverMultiScan, which is designed to diagnose and monitor severe liver disorders, including NASH – is offering 4.7 million shares at $15 to $17. Citigroup, Barclays, Stifel and Canaccord Genuity are the joint book-runners.

TScan Therapeutics (TCRX proposed) – a Waltham, Massachusetts-based cancer biotech developing T-Cell therapies for leukemia, and stem-cell transplant patients – is offering 6.3 million shares at $15 to $17. Morgan Stanley, Jefferies, Cowen and Barclays are the joint book-runners.

One more deal – a micro-cap IPO by HCW Biologics (HCWB proposed), a pancreatic cancer-focused biotech – might get priced on Thursday night. EF Hutton is the sole book-runner of the HCW Biologics IPO, which consists of just 5.6 million shares at $8 to $10. This is a NASDAQ listing.

Money Makes the World Go ‘Round

The financial services sector is also represented this week by  Blend Labs (BLND proposed), a cloud-based mortgage lending platform whose IPO is pricing Thursday night, as well as by Bridge Investment Group Holdings (BRDG proposed), a real estate investment manager on tap for pricing Thursday night. (The Bridge deal looks like a REIT, but it’s not one.)

Blend Labs is an IPO of 20 million shares at $16 to $18. Goldman SAchs, Allen & Co. and Wells Fargo Securities are the joint book-runners.

Bridge Investment Group Holdings, which invests in multifamily housing and office properties, among other things, is offering 18.8 million shares at $15 to $17. Morgan Stanley, J.P. Morgan, Citigroup, Wells Fargo Securities and UBS Investment Bank are the joint book-runners of the Bridge Investment deal.

Priced on Monday 

One SPAC, Good Works II Acquisition Corp. (GWIIU),, was priced Monday morning – and started trading Monday on the NASDAQ. I-Bankers Securities was the sole book-runner for the Good Works II deal.

One micro-cap healthcare IPO, Unicycive Therapeutics (UNCY), was priced Monday night (July 12, 2021): 5 million units at $5 each. The deal, a carryover from recent weeks, started trading on the NASDAQ on Tuesday. Roth Capital Partners was the sole book-runner.

Unicycive Therapeutics, based in Los Altos, California, is a biotech company focused on developing therapies to treat chronic kidney disease and acute kidney injury.

A healthcare-focused SPAC – Arya Sciences Acquisition Corp. V (ARYE proposed) – priced its IPO on Monday night (July 12, 2021). The deal consisted of 130 million Class A ordinary shares at $10 each to raise $130 million. (Most SPAC IPOs are unit offerings.) The stock started trading Tuesday on the NASDAQ. Jefferies and Goldman Sachs were the joint book-runners.

Arya Sciences Acquisition Corp. V, based in New York, will search for target businesses in the life sciences or medical technology sectors.

Priced on Tuesday 

A tiny Israeli medical device company – Inspira Technologies Oxy B.H.N. Ltd. (IINN) – priced its IPO, a micro-cap unit offering of only 2.9 million units at $5.51, on Tuesday night. This IPO had been in the wind for quite awhile. Aegis Capital Corp. was the sole book-runner. The shares and the warrants started trading Wednesday on the NASDAQ.

A life sciences SPAC – JATT Acquisition (JATT.U) – also was priced on Tuesday night. This was a SPAC IPO of 12 million units at $10. The stock and the warrants started trading Wednesday on the New York Stock Exchange. Raymond James was the sole book-runner.

Big Build-Up for Next Week

A total of 15 deals are on tap so far for the week of July 19th. Seven names popped onto next week’s IPO Calendar on Monday morning (July 12, 2021), after filing terms with the U.S. Securities and Exchange Commission. By late Monday afternoon, another IPO – Ryan Specialty Group Holdings – filed terms and joined the pricing schedule for the week of July 19th. By Thursday morning, 15 deals had been scheduled for next week.

Software is the predominant sector next week. It’s quite likely that more names will land on next week’s IPO Calendar as the filings keep flowing in at the SEC.

Stay tuned.

(Editor’s Note: This column was updated early Thursday morning with the pricing of eight IPOs on Wednesday evening, including Sight Sciences and seven other deals. More coverage of this week’s healthcare IPOs was also included in the update.)

**For an overview of the IPOs expected this week, please see our IPO Calendar

**Please click on the hyperlinks in each company’s name to go to the IPO Profile and a link to the prospectus.

(Never trade on proposed symbols. You might wind up owning something on the OTC Bulletin Board.)

Disclosure: Nobody on the IPOScoop.com staff has a position in any stocks mentioned above, nor do they trade or invest in IPOs. The IPOScoop.com staff does not issue advice, recommendations or opinions.

Disclaimer: A SCOOP Rating (Wall Street Consensus of Opening-day Premiums), is a general consensus taken, at press time, from Wall Street and investment professionals concerning how well an IPO might perform when it starts trading. The SCOOP Rating does not reflect the opinions of anyone associated with IPOScoop.com. The SCOOP ratings should not be taken as investment advice. The rating merely reflects the opinion of the professionals at the time of publication and is subject to last-minute changes due to market conditions, changes in a specific offering and other factors, such as changes in the proposed offering terms and the shifting of investor interest in the IPO. The information offered is taken from sources we believe to be reliable, but we cannot guarantee the accuracy.

 

 

The IPO Buzz: Dingdong Chops IPO’s Size

Dingdong (Cayman) Limited, a Chinese online grocery delivery platform, priced its chopped-down IPO early Tuesday at $23.50 – the low end of its range – to raise $87 million – nearly 75 percent less than what it had originally planned. The Chinese online grocery delivery startup drastically cut the deal’s size late Monday afternoon – hours ahead of its expected pricing last night. Dingdong (DDL) is expected to start trading Tuesday on the New York Stock Exchange.

Dingdong’s deal was cut late Monday to 3.7 million American Depositary Shares (ADS) – down from 14 million ADS initially – and the price range remained the same at $23.50 to $25.50. (Source: S-1/A filing dated June 28, 2021) The IPO’s proceeds are now estimated at $90.65 million – down 73.57 percent from the original estimate of $343 million under the initial terms, based on mid-point pricing.

Morgan Stanley, BofA Securities, Credit Suisse and HSBC are the joint book-runners of the Dingdong deal.

It was a wild start to a manic week. Sixteen IPOs are on the IPO Calendar – plus one uplift listing on the NASDAQ from the Euronext Brussels. Bankers expect to raise about $9 billion, if every deal gets done.

“Missfresh took all the air out of the deal,” a seasoned IPO trader said of Dingdong.

The stock of Dingdong’s smaller rival, Missfresh Limited (MF), plummeted in its debut on Friday on the Nasdaq.  Missfresh, priced at $13, opened below its IPO price – making it a broken deal – and closed on Friday at $9.66. The stock ended Monday’s regular trading session at $8.84.

Tencent-backed Missfresh, based in Beijing, accelerated its IPO pricing to June 24th – moved up from its initial timing on this week’s roster, with its rival Dingdong also on the IPO Calendar. Dingdong, backed by SoftBank and based in  Shanghai,  is the dominant grocery delivery app in the Yangtze River Delta.  Both companies have high cash burn rates; neither is profitable. Both face intense competition in China’s burgeoning online grocery delivery sector. (For a look at how the two Chinese grocery delivery startups compare, you may want to check this story, published June 11, 2021, by Protocol.)

SentinelOne Raises Price Range

Meanwhile, on the sunny side of the Street, SentinelOne (S proposed) increased the price range of its IPO to $31 to $32 – up from $26 to $29 – in an S-1/A filing early Monday. The number of shares stayed the same – at 32 million. The SentinelOne IPO is now expected to raise $1 billion, up from $880 million in estimated proceeds from its initial terms, based on mid-point pricing.

Morgan Stanley, Goldman Sachs, BofA Securities, Barclays, Wells Fargo Securities, UBS Investment Bank, Jefferies and Deutsche Bank Securities are the joint book-runners of the SentinelOne deal.

Cybersecurity pioneer SentinelOne is viewed as “the deal of the week.”  The IPO is scheduled for pricing tonight (Tuesday, June 29). The stock is expected to start trading Wednesday (June 30)  on the New York Stock Exchange.

“It’s in the right sector at the right time,” a veteran IPO professional said.

The timing of SentinelOne’s IPO is excellent. As TechCrunch points out, the public interest in cybersecurity is high following “a wave of high-profile cyberattacks during the COVID-19 pandemic, with hackers taking advantage of widespread remote working necessitated as a result.”

SentinelOne’s endpoint solution protected its customers when Russian hackers breached the networks of IT company SolarWinds in late December, as TechCrunch noted.

In the prospectus, SentinelOne cites its success in fending off the SolarWinds attack:

“Cybersecurity has always been a game of cat and mouse. The attacker only needs to be successful once whereas the defender must be correct each and every time. It is asymmetrical and simply impossible for humans alone to win. Our data and AI-powered XDR platform changes this paradigm, shifting the advantage to our customers. The results speak for themselves: in the world’s most recent mass-scale cyberattack, SolarWinds Sunburst, we kept each and every one of our customers safe. This is but one of numerous examples where our technology paradigm was battle tested. And, our customers won.”

SentinelOne, based in Mountain View, California, says it pioneered the world’s first AI-driven extended detection and response (XDR) platform to defend against cyberattacks.

Financial Snapshot: SentinelOne is NOT profitable. The company reported a net loss of $153.56 million on $112.5 million in revenues for the 12 months ended April 30, 2021.

SentinelOne is among nine IPOs scheduled to price Tuesday night and to start trading on Wednesday. For details on those other deals and this week’s pricing roster, please click on: the IPO Calendar  

(You can click the hyperlinks on company names on the IPO Calendar and those links will take you to the IPO profiles on IPOScoop.com.)

On the SPAC front: One special-purpose acquisition company, Elliott Opportunity II Corp. (EOCW.U), priced its IPO on Monday night (June 28, 2021) and upsized the deal in the process: 53 million units, up from 50 million, at $10 each to raise $530 million. The Elliott II SPAC intends to focus on acquisition targets in the tech sector.

Next Week

The IPO Calendar for the week of July 5th is blank so far. That’s not unusual. The IPO market typically slows down around the Fourth of July holiday. But this year has been anything but typical with IPO pricings and SEC filings coming fast and furious at a pace that reminds some IPO experts of the late 1990s. It’s possible that some names might land on next week’s calendar before Wall Street’s denizens head off to the beach – or elsewhere – to celebrate the Fourth.

Stay tuned.

(Never trade on proposed symbols. You might wind up owning something on the OTC Bulletin Board.)

Disclosure: Nobody on the IPOScoop.com staff has a position in any stocks mentioned above, nor do they trade or invest in IPOs. The IPOScoop.com staff does not issue advice, recommendations or opinions.

Disclaimer: A SCOOP Rating (Wall Street Consensus of Opening-day Premiums), is a general consensus taken, at press time, from Wall Street and investment professionals concerning how well an IPO might perform when it starts trading. The SCOOP Rating does not reflect the opinions of anyone associated with IPOScoop.com. The SCOOP ratings should not be taken as investment advice. The rating merely reflects the opinion of the professionals at the time of publication and is subject to last-minute changes due to market conditions, changes in a specific offering and other factors, such as changes in the proposed offering terms and the shifting of investor interest in the IPO. The information offered is taken from sources we believe to be reliable, but we cannot guarantee the accuracy.

(Editor’s Note: This column was updated to include Dingdong’s IPO pricing on Tuesday morning.)