The IPO Buzz: June Running Above Average

In June’s first week, bankers priced two IPOs. June’s second week kicks off on Monday with eight deals on the calendar – and another five in the wings for the following week. That’s a total of 15 IPOs as we slide into mid-June.

Last week, “The IPO Buzz” highlighted June’s monthly IPO traffic from 2001 through 2017. The median average for June during that time period was 15 IPOs. With mid-June 2018 in sight, that’s where we are now. And the June 2018 IPO calendar has three more weeks to add more names. Those are the weeks of June 11th, June 18th and June 25th.

Now let’s turn our heads to the coming week. The IPO calendar has seven new names plus a carryover from last week. That one is M17 Entertainment (YQ). The deal was priced on Thursday evening, June 7, offering 7.51 million shares at $8 each, down from a range of $10 to $12. There was no explanation as to why the deal did not trade in Friday’s market. There was also no word on why M17 Entertainment is being carried now as a “day-to-day” offering.

We will get off to a fast start this week with an IPO pricing on Monday night. We will wrap up the week with three IPOs scheduled for pricing on Thursday night and planning to trade on Friday morning. This week’s IPO Calendar is looking to raise $1.5 billion.

Monday evening for Tuesday’s trading:

Far Point Acquisition (FPAC.U proposed), based in New York City, is a newly organized blank check company. Far Point intends to focus its search for a target business in the financial technology, technology or financial services industries.

(For more information, please check the company profiles on’s website.)

Wednesday evening for Thursday’s trading:

Adaptive Insights (ADIN proposed), based in Palo Alto, California, is a leading provider of cloud-based software to modernize business planning. Its platform enables organizations to respond to changing business conditions with confidence and agility. Note: Of the 8.2 million shares in the IPO, the company will offer 7.82 million shares and selling shareholders will offer 380,000 shares.

Charah Solutions (CHRA proposed), based in Louisville, Kentucky, provides environmental and maintenance services to the power-generation industry, with operations in coal-fired and nuclear power plants across the country. The company’s on-site services include managing and cleaning up coal-combustion residuals, or coal ash. Charah has two business segments: 1. environmental solutions and maintenance and 2. technical services, which include outage services and staffing for nuclear-power-generation facilities. In 2017, Charah performed work at 51 coal-fired and nuclear-power sites. Note: Of the 7.35 million shares in this IPO, Charah will offer about 5.29 million shares and selling shareholders will offer about 2.06 million shares.

U.S. Xpress Enterprises (USX proposed), based in Chattanooga, Tennessee, is the country’s fifth-largest truckload carrier. It is one of the last major truckers to be privately held. The company provides services primarily throughout the United States. It focuses on the densely populated and economically diverse eastern half of the country. U.S Xpress’s fleet consisted of about 6,800 tractors and about 16,000 trailers, including about 1,300 tractors provided by independent contractors. Note: Of the 18 million shares in the IPO, the company will offer 16.6 million shares and selling shareholders will offer 1.4 million shares.

Thursday evening for Friday’s trading:

Avalara (AVLR proposed), based in Seattle, provides software to help companies improve their compliance with tax regulations. Avalara offers a leading suite of cloud-based solutions designed to improve accuracy and efficiency by automating the processes of determining taxability, identifying applicable tax rates, determining and collecting taxes, preparing and filing returns, remitting taxes, maintaining tax records and managing compliance documents. In 2017, Avalara processed an average of over 16 million tax determinations per day.

Puxin (NEW proposed), based in Beijing, is a successful consolidator of China’s after-school education industry. The company said it was China’s third-largest after-school education service provider in 2017 in terms of student enrollments, according to a Frost & Sullivan report cited in the prospectus. Since its inception in 2014, the company has acquired 48 schools. As of March 31, 2018, the company had built a nationwide network of 397 learning centers in 35 cities in China.

Verrica Pharmaceuticals (VRCA proposed), based in West Chester, Pennsylvania, is a clinical-stage medical dermatology company focused on identifying pharmaceutical products to treat skin diseases with significant unmet needs. The company is developing VP-102 to treat molluscum contagiosum, or molluscum, a highly contagious and primarily pediatric viral skin disease, and common warts. Note: Insiders have indications of interest for $30 million worth of stock in this $75 million IPO.

June’s Third Week

This brings us to the week of June 18th, when the IPO Calendar has five names looking to raise $460 million. But anything can happen when the SEC’s filing window opens for business again on Monday morning.

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.