The IPO Buzz: Navigating the Road to Market

The road to the IPO market always runs through the U.S. Securities and Exchange Commission’s filing window. Last week was a classic example.

Between Monday morning, Oct. 1, 2018, and Friday afternoon, Oct. 5, the SEC filing window booked 11 companies planning to offer their IPOs. Those 11 were looking to raise $1.95 billion. Another 12 updated their earlier filings by adding proposed pricing terms. Those 12 were looking to raise $2.45 billion. Another eight companies priced their IPOs. Those eight raised $1.55 billion. And 10 companies were added to the IPO calendar. Those 10 expect to raise $2.2 billion.

That’s heavy traffic.

In The IPO Buzz last week, IPOScoop reported that for the month of October running from 2001 through 2017, the calendar averaged 19.3 IPOs per month. Note: For October 2018, eight IPOs have already been priced and another 10 have been scheduled so far. And this October has only finished its first week.

Now here’s what to look for at the SEC filing window. Click on the following URL: S-1. All U.S. companies planning to price an IPO use the SEC Form S-1. A foreign-based company wanting to list and trade in the U.S. capital markets, files the SEC Form F-1; click here for the URL: F-1.

All updated filings are designated S-1/A or F-1/A. Watch for these because these will reveal the proposed number of shares being offered and the price range for the investing public. That’s show time for the IPO Calendar.

These IPOs go on the calendar with pricing dates. The SEC does not fix the dates. That is negotiated between the company going public and its investment bankers. For this information, please call your broker or check any of the IPO reporting services.

A Billion-Dollar Week

Now let’s turn to the present. Six IPOs are scheduled this week. These companies are looking to raise nearly $1.1 billion. Five are new faces to the calendar. One – YayYo – is a small-cap offering carried over from last week.

Let’s take a look at the five new names on this week’s IPO Calendar, organized by pricing and trading dates.

Wednesday evening for Thursday morning trading:

Allogene Therapeutics (ALLO proposed), based in South San Francisco, is a clinical stage immune-oncology company pioneering the development and commercialization of genetically engineered allogeneic T cell therapies to treat cancer. Allogene is developing a pipeline of off-the-shelf T cell product candidates designed to target and kill cancer cells. Its leading product candidates take aim at leukemia and non-Hodgkin lymphoma, the prospectus says.

Livent (LTHM proposed), based in Philadelphia, describes itself as a pure-play fully integrated lithium company, with a long proven history of producing performance lithium compounds. Its strategy is to focus on supplying high performance lithium compounds to the fast-growing EV (electric vehicle) battery market, the prospectus says.

Osmotica Pharmaceuticals plc (OSMT proposed), based in Bridgewater, New Jersey, is a fully integrated biopharmaceutical company focused on the development and commercialization of specialty products that target markets with underserved patient populations. Its total revenues in 2017 were $245.7 million. The company says its late-stage development pipeline includes a drug to treat muscle spasticity in multiple sclerosis patients and a drug to treat droopy eyelid.

Thursday evening for Friday morning trading:

Anaplan (PLAN proposed), based in San Francisco, is pioneering the category of Connected Planning, which allows organizations to transform their businesses by making better and faster decisions. The company says, “We believe Connected Planning is the next essential cloud category.”

Equillium (EQ proposed), based in La Jolla, California, is a biotechnology company that says it is leveraging deep understanding of immunobiology to develop products for severe autoimmune and inflammatory, or immuno-inflammatory, disorders with high unmet medical need such as acute graft vs. host disease, which affects transplant patients, and severe asthma, according to the prospectus. Its initial product candidate, EQ001 (itolizumab), is a clinical-stage, first-in-class monoclonal antibody that selectively targets the novel immune checkpoint receptor CD6.

(For more information, check the company profiles by clicking on the individual company’s name on the IPO Calendar on the website.)

October’s Third Week

The IPO Calendar has five names on it for the week of Oct. 15th. These companies aim to raise over $1.1 billion.

But more names could land on the IPO Calendar after the SEC’s filing window opens for business again on Monday morning, Oct. 8th.

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.