The 2018 IPO market closes out its first month on Wednesday, Jan. 31st, with 13 deals in the record books. This week’s calendar lists another eight IPOs expected to debut in February. These are good numbers – and well ahead of the averages.
The median January average was seven IPOs, according to the U.S. Securities and Exchange Commission’s filings. This average covers the period from 2001 through 2017. (The median average is the mid-point between the highest and the lowest monthly numbers.) The 2018 tally of 13 IPOs priced so far is not included in the median January average.
The median February average was 10 IPOs for the 2001-2017 span, SEC records showed. Once again, this monthly average does not include this week’s calendar.
(Note: IPOScoop.com excludes the following “IPOs” from its head count: Bank conversions, “best efforts” offerings, Regulation A+ offerings (which are usually “best efforts” offerings), “blank checks” or special-purpose acquisition companies (SPACs), closed-end funds, companies trading on the Pink Sheets moving up to the NASDAQ, and those foreign-traded securities making their debuts in the U.S. capital markets. The latter are public offerings. Investors can buy the underlying shares on foreign exchanges before their U.S. pricing dates.)
A total of nine deals are on this week’s IPO calendar. One is a “blank check” offering set to start trading in January. Bankers aim to raise over $3.5 billion this week. However, all are not true IPOs. One trades overseas, another in the U.S. OTC Market, and the third is a “blank check” deal. Let’s take a look.
Buy It on the BYMA
Central Puerto S.A. (CEPU) is Argentina’s largest private-sector power producer. The company is offering American Depositary Shares (ADS) in the U.S. capital markets, but its underlying shares have been traded on the Bolsas y Mercados Argentinos S.A. (the BYMA) under the symbol “CEPU” since 2012. The above symbol shows the stock traded at about Ps.45.95 on Jan. 26, 2018, or the equivalent to about S$24.14 per ADS based on the exchange rate on such date.
Traded on the OTC
VICI Properties (VICI) is a real estate investment trust (REIT) that owns, acquires and develops real estate assets in the gaming, hospitality, entertainment and leisure industries. The company’s common stock trades on the OTC Market Group, Inc.’s “Grey Market” under the symbol “VICI,” the prospectus says. VICI Properties’ portfolio consists of 20 market-leading properties, including Caesars Palace Las Vegas and Harrah’s Las Vegas, two of the most iconic hotels and casinos on the Las Vegas Strip.
Blank Check, Please
MTech Acquisition (MTECU – proposed) is a “blank check” company formed to assist in the growth of a business ancillary to the cannabis industry, with a particular sector focus that includes compliance, business intelligence, brand development and media.
Airports and Acne Cream
Here’s a snapshot of the rest of this week’s IPOs, whose businesses range from running airport concessions to developing an acne cream:
Corporación América Airports S.A. (CAAP – proposed) believes it is the largest private-sector airport concession operator in the world, based on the number of airports under management, and the 10th-largest private-sector airport operator in the world, based on passenger traffic. It operates 52 airports globally in Latin America, Europe and Eurasia.
Entera Bio Ltd. (ENTX – proposed) is a clinical-stage biopharmaceutical company focused on developing and commercializing oral large-molecule drugs to treat orphan diseases, such as hypoparathyroidism, a rare condition in which the body does not produce enough parathyroid hormone (PTH).
FTS International (FTSI – proposed) believes it is one of the largest providers of hydraulic fracturing services in North America. It has about 1.6 million total hydraulic horsepower across 32 fleets, with 27 fleets active as of Jan. 8, 2018.
Among its customers are Chesapeake Energy, ConocoPhillips, Devon Energy, EOG Resources, Diamondback Energy, EQT Company, Range Resources and others.
Hudson (HUD – proposed) operates a diversified portfolio of over 200 concession agreements through 989 stores in 88 transportation terminals and destinations, including concessions in 24 of the 25 largest airports in the continental United States and Canada, and in landmarks such as the Empire State Building and the United Nations Headquarters.
One Stop Systems (OSS – proposed) provides high-end systems for high-performance computing applications. The company designs, manufactures and markets purpose-built systems that let customers exploit Big Data opportunities faster and more efficiently.
Sol-Gel Technologies (SLGL – proposed) is a clinical-stage dermatology company focused on identifying, developing and commercializing branded and generic topical drug products to treat skin diseases. Its current product candidate pipeline consists of late-stage branded product candidates that leverage our proprietary, silica-based microencapsulation technology platform, and several generic product candidates across multiple indications. Its lead product candidate, TWIN, is a novel once-daily non-antibiotic topical cream to treat acne.
(For more information about these companies and others on the IPO calendar, please check the profiles found on IPOScoop.com’s website.)
For the week of Feb. 5, 2018, three deals are on tap, aiming to raise $460 million.
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.