Only four IPOs came to market last week. Three were priced below their original filing ranges; they were losers. The other was priced on the low end of its price range and wound up a winner, UP 5 cents per share. Nevertheless, that was an improvement over the previous week.
In the week of April 21, three deals were priced – all losers.
During the week of April 14, 10 IPOs were priced and all came to market below their original filing ranges. That worked, to a lesser extent. Seven opened above the reduced pricings, two did not and the other was unchanged. Their average opening-day gain was 3.37 percent, DOWN from 17.8 percent, the average opening-day gain for all IPOs priced this year through Friday, April 11.
Drugs, China’s Cheetah and Energy
This week’s IPO calendar lists nine deals with bankers aiming to raise over $1.2 billion. The IPO professionals are reportedly looking at four: Alder BioPharmaceuticals, Cheetah Mobile, GasLog Partners LP and PBF Logistics LP.
Alder BioPharmaceuticals (ALDR – proposed) is a Bothell, Washington-based clinical-stage biopharmaceutical company. It is developing therapeutic antibodies with the potential to transform current treatment models. One of the drugs in its pipeline is aimed at preventing migraine headaches. Note: Alder has a collaboration agreement with Bristol-Myers Squibb to develop Clazakizumab, a humanized monoclonal antibody designed to treat rheumatoid arthritis. Bristol-Myers Squibb has also indicated an interest in buying up to $20 million of common stock in this deal at the initial public offering price. In addition, certain directors and existing stockholders have indicated an interest in purchasing up to an aggregate of $14 million of common stock in this deal at the IPO price. For more information, please click here: Alder BioPharmaceuticals)
Cheetah Mobile (CMCM – proposed) is a Beijing-based security software maker known for its Android smartphone apps designed to make the Internet and smartphone experience faster, safer and easier. Its best-known product is Clean Master, an app that removes junk files from a mobile device at the touch of a button. Other apps include Battery Doctor, which prolongs battery life, and CM Security, which offers anti-virus protection and lets users block unwanted calls. Cheetah Mobile gets a significant chunk of its revenue from online marketing partnerships with Alibaba, Baidu and Tencent, three of China’s biggest players in e-commerce and mobile gaming, according to the company’s prospectus. The platform is powered by Cheetah’s proprietary cloud-based data analytics engines. (For more information, please click here: Cheetah Mobile)
GasLog Partners LP (GLOP – proposed) is based in Monaco. Its general partner is controlled by Peter G. Livanos, a Greek shipping magnate who is the founder and chairman of GasLog Ltd. GasLog Partners LP is a Marshall Islands master limited partnership or MLP formed to own, operate and acquire carriers to transport liquefied natural gas under long-term charters. Worth noting from the prospectus: “Certain significant investors in GasLog Ltd., including members of the Radziwill family, the Onassis Foundation and members of the Livanos family, have indicated that they currently intend to buy up to an aggregate of approximately $60 million, or up to an aggregate of about 3 million common units in the offering at the public offering price. In addition, the underwriters have reserved up to 5 percent of the common units offered for sale in the offering for officers, directors and employees and related persons.”
(For more information, please click here: GasLog Partners LP)
PBF Logistics LP (PBFX – proposed) is a Parsippany, New Jersey-based master limited partnership recently formed by PBF Energy to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets. (Note: PBF Logistics LP plans to pay a minimum quarterly distribution of 30 cents per unit for each complete quarter, or $1.20 per unit on an annualized basis, to yield 6 percent.) (For more information, please click here: PBF Logistics LP)
Looking into the following week, the calendar has just one IPO. As we have seen in the past, more names could pop onto the IPO launching pad by the time that Monday, May 12, rolls around.
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.