Reynolds Consumer Products (REYN proposed) is the big name on the IPO Calendar for the final week of January 2020. Reynolds, known for its iconic products like Reynolds Wrap aluminum foil and Hefty trash bags, is expecting to raise about $1.25 billion in its IPO. That is about 42 percent of the dollar volume from this week’s six deals.
Bankers expect to raise about $1.87 billion from all six IPOs scheduled this week.
Buyers are gathering near the IPO water cooler to check out a few of these deals. Besides Reynolds, two other IPOs – 1Life Healthcare (ONEM proposed) and Black Diamond Therapeutics (BDTX proposed)- are “in play,” the experts say. (We’ll have more on this in a minute.)
You don’t have to flip back too far in time to find a busier week than the coming one. That was the week of Dec. 9, 2019. It produced eight IPOs that raised $3.17 billion. In addition to those numbers, that December week turned out a couple of eye-popping IPOS:
Bill.com Holding (BILL) was the No. 1 aftermarket performer. Bill.com provides billing and other back-office software as a subscription service to small and medium businesses. Bill.com raised about $216 million. It priced its IPO of 9.82 million shares at $22 each on Dec. 11. The stock closed its first day of trading (on Dec. 12) at $35.50. On Friday, Jan. 24, 2020, Bill.com closed at $47.23, UP 114.7 percent from its IPO price.
XP (XP) was the heavyweight. It raised $1.96 billion and did well in the aftermarket as well. XP provides financial services to consumers and businesses in Brazil. It priced its IPO of 72.5 million shares at $27 each on Dec. 10. XP closed its first day of trading (Dec. 11) at $34.46. On Friday, Jan. 24, 2020, XP closed at at $38.53, UP 42.7 percent from its IPO price.
History teaches us that the IPO gods have all sorts of surprises for investors – sometimes more than a little deflating and sometimes dazzling like the week of Dec. 9, 2019. We will have to wait for the gods to work their magic this week.
A Half-Dozen IPOs
Let’s take a look at this week’s six IPOs, organized by pricing and trading dates.
Tuesday evening for Wednesday’s trading
Annovis Bio (ANVS proposed), based in Berwyn, Pennsylvania, is a clinical stage drug platform company addressing neurodegeneration, such as Alzheimer’s disease and Parkinson’s disease.
This is a small-cap deal: 1.4 million shares at $6 to $8.
Wednesday evening for Thursday’s trading
Avadim Health (AHI – proposed), based in Asheville, North Carolina, is a high-growth healthcare and wellness company that sells topical products to improve immune health, neuromuscular health and skin barrier health.
The company plans to offer 5 million shares at $14 to $16 each.
Black Diamond Therapeutics (BDTX proposed), based in Cambridge, Massachusetts, is a precision oncology medicine company pioneering the discovery and development of small molecule tumor-agnostic therapies.
This is an IPO of 8.9 million shares at $16 to $18 each.
Thursday evening for Friday’s trading
Arcutis Biotherapeutics (ARQT proposed), based in Westlake Village, California, is a late-stage biopharmaceutical company focused on developing and commercializing treatments for immune-mediated dermatological diseases such as plaque psoriasis and atopic dermatitis, which have high unmet medical needs.
This is an IPO of 7.8 million shares at $15 to $17 each.
1Life Healthcare (ONEM proposed), based in San Francisco, is a membership-based primary care platform with seamless digital health and inviting in-office care, convenient to where people work, shop, live and click.
Reynolds Consumer Products (REYN proposed), based in Lake Forest, Illinois, makes Reynolds Wrap aluminum foil, Hefty plastic trash bags and other products with a presence in 95 percent of households across the United States.
This is an IPO of 47.2 million shares at $25 to $28 each, which could raise about $1.25 billion – if the deal is priced at its midpoint of $26.50.
(For more information on these companies, please check the IPO Profiles on IPOScoop.com.)
Week of Feb. 3
The IPO Calendar is blank for the first week of February, but anything can happen when the U.S. Securities and Exchange Commission’s filing window opens again for business on Monday morning.
Disclosure: Neither the author nor anyone else on the IPOScoop.com staff has a position in any stocks mentioned, nor do we trade or invest in IPOs. The author and IPOScoop.com staff do not issue advice, recommendations or opinions.