November’s IPO parade marches into this week with 10 offerings expecting to raise $1.9 billion. The key question is: What to look for among nearly a dozen deals? Answer: Any company whose name starts with the letter “S” – and there are four of them.
Last week’s calendar also generated 10 deals, which produced $1.56 billion in proceeds. There was one big disappointment. It came from the only name starting with an “S,” but more on that in a minute.
There are four IPOs this week starting with the letter “S” and the IPO experts say each has attracted some degree of investor interest. They are SailPoint Technologies Holdings (SAIL – proposed), scPharmaceuticals (SCPH – proposed), SendGrid (SEND – proposed) and Stitch Fix (SFIX – proposed).
Something for Everyone
Software, pharmaceuticals and online shopping are the sectors represented by this week’s IPOs brought to you by the letter “S.” Let’s take a look.
SailPoint Technologies, based in Austin, Texas, provides identity governance software solutions to businesses. SailPoint offers on-premises software and cloud-based solutions for its customers to govern the digital identities of employees, contractors, business partners and other users.
scPharmaceuticals, based in Burlington, Massachusetts, is a pharmaceutical company developing its patented formula of subcutaneous furosemide, a diuretic, for delivery via its sc2Wear infusor to treat patients with worsening heart failure outside the hospital. This is an alternative to IV treatment.
SendGrid, based in Denver, is a digital communication platform that handles transactional and marketing email for businesses. It also offers a cloud-based email delivery service.
Stitch Fix, based in San Francisco, is an online subscription personal shopping service to help women and men select clothing, shoes and accessories. Its clothing choices come in a wide range of sizes, including petite, plus and maternity sizes for women, and men’s waist sizes from 28 to 42.
(For more information about these companies and others on the IPO calendar, please check the profiles found on IPOScoop.com’s website.)
The deal was described as “the best of the week” while the offering of 45 million American Depositary Shares (ADS) was being reported as up to 15 times oversubscribed and higher. People were looking for generous allocations and a chance to make up for some of the other “can’t miss” IPOs that did.
Sogou was priced on the high end of its $11-to-$13 range and the first pre-opening quote was reported at $15. Then the bid started slipping. It finally opened at $13 and fear took over. The general feeling among the IPO players was that if the Sogou deal broke issue price, you’d see an $11.50 bid. People bailed out, but the bid held at $13, and the “hot issue” closed its opening day at $13.50.
An Eclectic Lineup
Rounding out this week’s IPO calendar are Arsanis (ASNS – proposed), a clinical-stage biopharmaceutical company focused on applying monoclonal antibody immunotherapies to treat serious infectious diseases; Bluegreen Vacations (BXG – proposed), a vacation ownership company that markets and sells VOIs (vacation ownership interests)and manages resorts in top leisure and urban destinations; Jianpu Technology (JT – proposed), an independent open platform for discovery and recommendation of financial products (loans and credit cards)in China; Molino Cañuelas (MOLC – proposed), a Buenos Aires-based producer of vegetable oil, flour, biscuits, cookies and crackers, ready-mixed flours and bread crumb products, and MPM Holdings (MPMH – proposed), one of the world’s largest producers of specialty silicones and silanes and a global leader in fused quartz and specialty ceramics products.
A Peek at Thanksgiving Week
For the week of Nov. 20, 2017, the IPO calendar lists just one deal aiming to raise about $130 million. However, when the SEC opens its filing window again on Monday morning, anything can happen.
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.