The IPO Buzz: Following the Playbook

The IPO market is dancing to Wall Street’s playbook. The U.S. Securities and Exchange Commission (SEC) chipped in with 14 filings last week: Four new companies moved into the IPO pipeline and 10 companies filed amendments to their prospectuses. Most of those names found themselves on the IPO Calendar, waiting to go public.

From the amendments, bankers picked out nine for the IPO Calendar – all expected to go public this week and next. That bumped the September calendar up to 11 IPOs. These companies are looking to raise $4.63 billion. Those numbers were up sharply from this time last week. At the close on Friday, Aug. 31st, the IPO Calendar had just one deal (a “blank check” company’s unit offering) for the week of Sept. 3rd. As it turned out, another name – yes, another unit offering by a “blank check” company – popped onto the calendar for what was only a four-day work week due to the Labor Day holiday.

In summary: If all of Wall Street’s dreams come true, September 2018 will run ahead of the average IPO traffic over the last 17 years, according to the SEC filings.

From 2001 through 2017, 161 IPOs were priced. Over that 17-year period, the average traffic for the month of September alone was 9.5 IPOs. The largest September volume belongs to 2013, when 22 IPOs got priced. Worth noting: There were four Septembers when there was no traffic – 2001, 2008, 2011 and 2012.

Now back to the present. This week’s IPO Calendar has six deals looking to raise $1.63 billion. Of that traffic, four are overseas companies, one is a biopharmaceutical firm and one is a small bank offering.

For many on Wall Street, this will be another four-day work week with the observance of Rosh Hashanah beginning at sundown on Sunday, Sept. 9th.

Let’s take a look at this week’s deals, organized by pricing and trading dates.

Tuesday evening for Wednesday morning:

111 (YI proposed), based in Shanghai, says it provides hundreds of millions of consumers with access to pharmaceutical products and medical services directly through its online retail pharmacy, indirectly through its offline pharmacy network and through its Internet hospital.

NIO (NIO proposed), based in Shanghai, designs, manufactures and sells electric vehicles. Some call this company “China’s Tesla.”

Thursday evening for Friday morning

FVCBankCorp (FVCB proposed) is a registered bank holding company headquartered in Fairfax, Virginia. It operates primarily through its sole subsidiary, FVCbank, a community oriented, locally owned and managed commercial bank organized under the laws of the Commonwealth of Virginia.

Navios Maritime Containers L.P. (NMCI proposed), based in Monte Carlo, Monaco, is a growth-oriented international owner and operator of containerships. It was formed in April 2017 by Navios Holdings, which owns, operates or manages one of the largest shipping fleets by capacity, to take advantage of acquisition and chartering opportunities in the container shipping sector.  The stock is traded on the Norwegian OTC List under the symbol “NMCI,” according to the prospectus.

Principia Biopharma (PRNB proposed), based in South San Francisco, is a clinical-stage biopharmaceutical company dedicated to bringing transformative oral therapies to patients with significant unmet medical needs in immunology and oncology. Its proprietary Tailored Covalency® platform enables the company to design and develop reversible covalent and irreversible covalent, small molecule inhibitors with potencies and selectivities that it believes will rival those of injectable biologics, yet maintain the convenience of a pill.

Qutoutiao (QTT proposed), based in Shanghai, says it is the No. 2 mobile content aggregator in China in terms of MAUs (monthly active users) and average DAUs (daily active users) in July 2018, according to the Analysys Report. The name of its flagship mobile application, Qutoutiao, means “fun headlines” in Chinese. This app aggregates articles and short videos from professional media and freelancers and presents customized feeds to users.

(For more information about these companies on the IPO calendar, please check the profiles found on the website.)

Mid-September Menu

There are five IPOs on tap for the week of Sept. 17th. But anything can happen when the U. S. Securities and Exchange Commission’s filing window opens for business again on Monday morning, Sept. 10.

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.