The post-Labor Day IPO calendar is coming together pretty much on schedule. It has two offerings on tap this week. In the background, the U.S. Securities and Exchange Commission (SEC) filing window has been a busy place over the past two weeks.
All told, 13 companies filed for IPOs. They expect to raise about $1.1 billion. Added to that, seven companies updated their earlier filings. They now aim to raise $1.8 billion. From those figures, the IPO calendar quietly shifted into gear for fall with two deals scheduled this week and six for next week.
In a nutshell, the calendar has been quiet, but the IPO market has been busy.
Targeting Unicorns and Real Estate
The two offerings on tap this week are Social Capital Hedosophia Holdings (IPOA.U – proposed) and Tremont Mortgage Trust (TRMT – proposed).
Social Capital Hedosophia, based in Palo Alto, California, is a “blank check” or special purpose acquisition company (SPAC). The company was formed as a partnership between Social Capital, a Silicon Valley-based investment firm, and Hedosophia, a London-based venture capital growth firm, to invest in businesses operating in the technology industries. Target companies are likely to include unicorns, which are privately held companies with individual valuations of $1 billion or more. Social Capital’s founder and managing partner, Chamath Palihapitiya, was one of the original members of Facebook’s management team, the prospectus says.
Tremont Mortgage Trust, based in Newton, Massachusetts, is a recently formed real estate finance company that plans to originate and invest in first mortgage loans secured by middle- market and transitional commercial real estate (CRE). Tremont defines middle-market CRE as commercial properties that have values up to $75 million and transitional CRE as commercial properties subject to redevelopment or repositioning activities that are expected to increase the value of the properties.
Both deals are expected to be priced Wednesday evening, Sept. 13, to trade Thursday morning, Sept. 14, 2017.
(For more information about these companies, please check the IPO profiles found on IPOScoop.com’s website.)
Right on Time
For 2017, the pricing date for the first IPO after Labor Day looks to be Sept. 13. That falls in line with the recent past.
Let’s take a look at the last five years, according to the SEC filings:
- 2016: On Sept. 14, the first IPO was priced.
- 2015: On Sept. 11, the first IPO was priced.
- 2014: On Sept. 12, the first IPO was priced.
- 2013: On Sept. 13, the first IPO was priced.
- 2012: On Sept. 13, the first IPO was priced.
Names to Watch
The recent IPO filings produced some interesting names over the last two weeks:
Roku (ROKU – proposed), based in Los Gatos, California, designs and manufactures consumer electronic products. The company offers wireless enabled devices that stream audio and video content from the internet to home entertainment systems. Roku filed for an IPO to raise $100 million. No pricing date was available.
Switch (SWCH – proposed), based in Las Vegas, Nevada, is a technology infrastructure company powering the sustainable growth of the connected world and the Internet of Everything. The company creates smart, resilient and sustainable infrastructure solutions that support the most innovative technology ecosystems.
BEST (BEST – proposed), based in China, is a multi-sided platform that combines technology, integrated logistics and supply chain services, last-mile services and value-added services in China. The company filed to offer 62.1 million shares at $13 to $15 each on Tuesday, Sept. 19, 2017. But there will be more on this offering next week.
September Shapes Up
The IPO calendar has six deals on the calendar for the week of Sept. 18, 2017. They are expected to raise about $1.4 billion.
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 opinion.