When the NYSE’s opening bell rings on Monday morning, Feb. 4, there will be an IPO calendar of six deals for the week. Three are blank check offerings and three are biotech companies. A half-dozen deals in a week may not seem like much, but based upon a 52-week calendar, that would amount to 312 IPOs.
The last time an annual IPO calendar produced over 300 deals was in 2000 with 433 offerings, according to the U.S. Securities and Exchange Commission’s filings. And 2000 turned out to be the end of the dot.com era, which was known as “insanity.com.”
The following year, 2001, the calendar turned out 96 IPOs.
That is what happens when the stock market moves into bear market territory. Note: The Nasdaq Composite Index, the barometer of the IPO market, ended 2001 down 21.1 percent. The NASDAQ closed on Dec. 31, 2001, at 1,950.40, down from 2,470.52 on Dec. 29, 2000, the last trading date of 2000.
Fast forward to now: The NASDAQ Composite is not in a bear market. The NASDAQ closed on Friday, Feb. 1, 2019, at 7,263.87, UP 17.3 percent from 6,192.92, its recent closing low on Dec. 24, 2018. That performance puts wind in the IPO market’s sails.
February’s First Week
Let’s take a look at this week’s IPO calendar, which has six offerings expecting to raise $881 million. The deals are organized by pricing and trading dates.
Monday evening pricing for Tuesday morning trading
Wealthbridge Acquisition (HHHU proposed), based in Hong Kong, is a blank check company seeking to focus on the air transportation and aviation industry in China. The company will also be interested in acquiring foreign subsidiaries of Chinese conglomerates or state-owned enterprises.
The Wealthbridge IPO’s first day of trading falls on Feb. 5th, the start of the Chinese New Year. This is the Year of the Pig.
Wednesday evening pricing for Thursday morning trading
Alector (ALEC prospectus), based in South San Francisco, is a clinical-stage biopharmaceutical company pioneering immuno-neurology, a novel therapeutic approach to treat neurodegeneration. Its two leading product candidates are targeting FTD (frontotemporal dementia) and Alzheimer’s disease. Note: Insiders have indicated for $85 million of the $175.75 million deal, or about 48.4 percent of the IPO.
Monocle Acquisition (MNCLU proposed), based in New York City, is a blank check company seeking to acquire and operate a business in the aerospace and defense, industrial or technology and telecommunications industries, where it believes there are many potential target businesses.
Thursday evening pricing for Friday morning trading
Gossamer Bio (GOSS proposed), based in San Diego, California, is a clinical-stage biopharmaceutical company focused on discovering, acquiring, developing and commercializing therapeutics in the disease areas of immunology, inflammation and oncology. Note: Insiders have indicated for $100 million of the $230 million deal, or about 43.5 percent of the IPO.
Harpoon Therapeutics (HARP proposed), based in South San Francisco, is a clinical-stage immunotherapy company developing a novel class of T cell engagers that harness the power of the body’s immune system to treat patients suffering from cancer and other diseases. Note: Insiders have indicated for $40 million of the $75.6 million deal, or about 52.9 percent of the IPO.
RMG Acquisition (RMG.U proposed), based in New York City, is a blank check company formed to identify, acquire and operate a business in the diversified resources and industrial materials sectors, including the chemicals, energy services and alternatives, environmental services, metals and power sectors.
February’s Second Week
For the week of Feb. 11th, the IPO Calendar has three companies waiting to go public. But anything can happen come Monday morning, when the SEC’s filing window reopens for business.
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.