The IPO Buzz: Spring Break, April Preview

The IPO calendar takes a break this week. No deals are set to make their debuts, but that’s no reason for concern, according to the spokespeople for the New York Stock Exchange and the NASDAQ Capital Markets. April’s calendar is “loaded,” they say.

They should know. They are looking at the confidential papers for listings on their respective stock exchanges, but due to the nature of the information, they did not elaborate.

March IPO Scorecard

The IPO market for March ended on Friday, March 24, with a total of 10 deals priced during the month. This excluded two “blank check” offerings that raised $1.2 billion.

Here is the March IPO Scorecard:

  • Priced: 10
  • Above range: 3
  • Within range: 4
  • Below range: 3
  • Win-loss record: 8 up and 2 down.
  • Average opening-day gain for all 10: UP 14.77 percent

The largest dollar amount raised was Snap (SNAP). It priced 200 million shares at $17 each on March 1 to raise $3.4 billion. Snap’s stock closed on Friday, March 24, at $22.74 – UP 33.76 percent from its IPO price.

Note: Seven brokerage firms have initiated research coverage of Snap, but they were not among Snap’s investment bankers. So the companies offering research were not affected by the 25-day quiet period, which ended on Sunday, March 26.

The sharpest opening-day gain was MuleSoft(MULE). It priced 13 million shares at $17 each on March 16 to raise $221 million. The IPO closed its opening day at $24.75 – UP 45.58 percent. On Friday, March 24, MuleSoft ended at $22.53, up 32.53 percent from its IPO price.

Note: MuleSoft’s 25-day quiet period ends on April 10. There is no record of any research coverage initiated so far.

April Traffic

Nevertheless, April’s IPO calendar started showing signs of life. On tap for the week of April 3 are Azul S.A. (AZUL – proposed) and Schneider National (SNDR – proposed).

Azul is Brazil’s largest airline in terms of departures and cities served. The prospectus reported it had about 784 daily departures serving 102 destinations and a network of 203 non-stop routes as of Dec. 31, 2016.

The company plans to offer 24 million American Depositary Shares (ADS) at US$18.02 to US$21.81 each on Thursday evening, April 6, to trade on the New York Stock Exchange Friday morning, April 7.

Schneider National is a Green Bay, Wisconsin-based transportation and logistics services company providing a broad portfolio of premier truckload, intermodal and logistics solutions. The company operates one of the largest for-hire trucking fleets in North America.

The company plans to offer 28.9 million shares at $18 to $20 each on Wednesday evening, April 5, to trade on the New York Stock Exchange Thursday morning, April 6.

Two buzz-worthy tech IPOs entered the pipeline, as this column noted last week. Expect these IPOs sometime in April:

  • Okta (OKTA – [proposed) filed for an IPO to raise $100 million. The San Francisco-based company is an independent provider of identity management software for the enterprise. The Okta Identity Cloud enables its customers to securely connect people to technology anywhere, anytime and from any device.
  • Yext (YEXT – proposed) filed for an IPO to raise $100 million. The New York-based company offers a platform that enables businesses to manage their digital knowledge in the cloud and sync it to over 100 services, including Apple Maps, Bing, Cortana, Facebook, Google, Google Maps, Instagram, Siri and Yelp.

This brings us to the week of April 3. Its IPO calendar has two offerings, but the traffic could change when the SEC’s filing window opens for business on Monday morning, March 27.

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.