The IPO Buzz: Biggest Week Since Summer 2015

This week, Wall Street’s bankers swing into action with their first big IPO calendar for 2017. Eight offerings are set to be priced – and bankers are looking to raise $1.86 billion. If all the deals get out the door, it would be the largest weekly traffic since the summer of 2015.

During the week of June 22, 2015, 13 IPOs made their debuts, according to the U.S. Securities and Exchange Commission filings. But that was 19 months ago.

Fast forward to the present and we find this week’s calendar is dominated by the health-care sector. Four health-care IPOs are listed. The calendar also includes two industrial companies, an energy company and a technology IPO. And the investment pros say there are a couple of IPOs in play.

On the ‘Must Buy’ Lists

Two names reportedly on investors’ “must buy” lists are AppDynamics (APPD – proposed) and JELD-WEN Holding(JELD – proposed).

AppDynamics, based in San Francisco, is a software firm providing application performance management tools for large-scale enterprises. As of Oct. 31, 2016, AppDynamics reported it had about 1,975 customers, including over 275 of the Global 2000, in over 50 countries across every major industry, according to the prospectus.

Note: In a private placement, two of the company’s insiders are planning to buy up to $32.5 million of the IPO.

Bankers plan to price 12 million shares at $10 to $12 each on Wednesday evening, Jan. 25, 2017, to trade Thursday morning on the NASDAQ.

JELD-WEN, based in Charlotte, North Carolina, is considered one of the world’s largest door and window manufacturers. The company designs, produces and distributes a range of interior and exterior doors, wood, vinyl and aluminum windows, and related products for use in the new construction and R&R of residential homes and, to a lesser extent, non-residential buildings. The company markets its products globally under the JELD-WEN brand, along with several market-leading regional brands such as Swedoor and DANA in Europe, and Corinthian, Stegbar and Trend in Australia.

Note: The company is planning to sell about 22.3 million shares and insiders are planning to sell about 2.7 million shares.

Bankers plan to price 25 million shares at $21 to $23 each on Thursday evening, Jan. 26, 2017, to trade Friday morning on the New York Stock Exchange.

Designer Drugs

The health-care IPOs are AnaptysBio (ANAB – proposed), Jounce Therapeutics (JNCE – proposed), ObsEva SA (OBSV – proposed) and Visterra (VIST – proposed). Each company is in the designer drug business. Each IPO also has notable insider interest:

  • AnaptysBio, an antibody firm focused on unmet medical needs in inflammation and immuno-oncology, has insiders looking to invest about $30 million in the IPO.
  • Jounce Therapeutics, a clinical stage immunotherapy company working on cancer treatment therapies, has insiders looking to invest about $10 million in the IPO.
  • ObsEva, a pharmaceutical firm developing therapeutics to treat conditions that compromise a woman’s reproductive health and pregnancy, has insiders looking to invest about $45 million in the IPO.
  • Visterra, a clinical biopharmaceutical company developing precision antibody-based drugs to treat the flu and other infectious diseases, has insiders looking to invest up to  about $26.4 million in the IPO.

(For company profiles, pricing information and trading dates, please check’s website.)

From Energy to Emergency Vehicles

The two stand-alone industrial items are Jagged Peak Energy (JAG – proposed) and REV Group (REVG – proposed).

Jagged Peak Energy, an independent oil and gas company based in Denver, is engaged in the acquisition and development of unconventional oil and associated liquids-rich natural gas reserves in the Southern Delaware Basin, a sub-basin of the Permian Basin of West Texas. Its acreage is located on large contiguous blocks in the adjacent counties of Winkler, Ward, Reeves and Pecos, with significant original oil-in-place within multiple stacked hydrocarbon-bearing formations.

Note: Jagged Peak Energy is planning to sell about 26.4 million shares and insiders are planning to sell about 11.8 million shares.

Bankers plan to price 38.2 million shares at $16 to $18 each on Thursday evening, Jan. 26, 2017, to trade Friday morning on the NYSE.

REV Group, based in Milwaukee, is a distributor of specialty vehicles and related aftermarket parts and services. The company serves three segments: Fire & Emergency, Commercial and Recreation. It provides customized vehicle solutions for applications including essential needs (ambulances, fire apparatus, school buses, mobility vans and municipal transit buses), industrial and commercial (terminal trucks, cut-away buses and street sweepers) and consumer leisure (RVs and luxury buses).

Bankers plan to price 12.5 million shares at $19 to $21 each on Thursday evening, Jan. 26, 2017, to trade Friday morning on the NYSE.

A Peek at February

Next week the IPO calendar has just two deals on tap. But anything could happen on Monday morning, Jan. 23, 2017, when the SEC turns its filing window sign around to “OPEN.”

Stay tuned.

Disclosure: Neither the author nor anyone else on the staff has a position in any stocks mentioned, nor do we trade or invest in IPOs. The author and staff do not issue advice, recommendations or opinion.