An initial buying wave on Uber Technologies (UBER) turned into a selling panic when the $8.1 billion IPO finally opened at $42 on the New York Stock Exchange on Friday, down from an offering price of $45 on 180 million shares.
All the public knew was the pre-opening quote was $46 to $48 and remained at that level for about an hour. For some unstated reason, the IPO did not open, and those buy orders quickly turned into sell orders as the pre-opening quote started shrinking. The rush for the door was on and the unthinkable happened. The Uber IPO turned into a broken deal when it opened $3 below its offering price.
But the Uber IPO story isn’t over.
Uber’s 25-day quiet period ends June 3. The 25-day quiet period prohibits bankers from making comments about their IPOs until 25 days after their pricing dates. Things could get a lot more interesting when the research reports start coming out.
This sets the stage for this week’s IPO Calendar.
Seven New Names in Mid-May
Seven of this week’s nine deals are new names on the IPO Calendar, while two are carryovers from last week
If all nine deals get done, bankers expect to raise about $4.9 billion. One deal is for $3 billion and another for $1 billion, but more on those later.
This week’s nine deals represent a variety of sectors ranging from a Silicon Valley cloud company to a Chinese coffee network as well as a biopharma, a lab materials and instruments company, a blank check, an e-commerce platform, a restaurant chain and two REITs (real estate investment trusts). In other words, there appears to be something for everyone.
Let’s take a look at this week’s IPOs, organized by pricing and trading dates.
Day to Day
Applied Therapeutics (APLT proposed) is a New York-based clinical-stage biopharmaceutical company. This IPO is a carryover from last week. The company’s leading drug candidate is designed to treat diabetic cardiomyopathy, “a fatal fibrosis of the heart, for which no treatments are available,” the prospectus says.
Week of May 13th
AGBA Acquisition (AGBAU proposed), based in Hong Kong, is a blank check company focused on operating businesses in the healthcare, education, entertainment and financial services sectors that have their principal operations in China.
Monday evening pricing for trading Tuesday morning, May 14
ConversionPoint Holdings (CPTI proposed), based in Newport Beach, California, offers an e-commerce platform driven by data and powered by artificial intelligence.
Postal Realty Trust (PSTL proposed), based in Cedarhurst, New York, owns and manages properties leased to the United States Postal Service. This REIT is a carryover from last week. After the IPO is completed, the company will own and manage an initial portfolio of 271 postal properties in 41 states, according to the prospectus.
Tuesday evening pricing for trading Wednesday morning, May 15
Bricktown Restaurant Group (BEER proposed), based in Oklahoma City, operates Bricktown Brewery and Bricktown Tap House & Kitchen restaurants in five states: Oklahoma, Texas, Arkansas, Kansas and Missouri.
Wednesday evening pricing for trading Thursday morning, May 16:
PIMCO Mortgage Income Trust (PMTG proposed), based in Newport Beach, California, is a real estate investment trust (REIT) formed recently to acquire, manage and finance, directly or through its subsidiaries, Agency RMBS, MSRs, Non-Agency RMBS, residential mortgage loans and other real estate-related assets.
This PIMCO offering is a $1 billion deal, based on its SEC filing terms of 50 million shares at $20 each.
Thursday evening pricing for trading Friday morning, May 17
Avantor (AVTR proposed), based in Radnor, Pennsylvania, is a provider of mission critical products and services to customers in the biopharma, healthcare, education and government sectors as well as in the advanced technologies and applied materials industries, according to the prospectus.
Avantor aims to raise $3 billion. It is offering 154 million shares at a price range of $18 to $21 each.
Fastly (FSLY proposed), based in San Francisco, offers an edge cloud platform enabling developers to build, secure and deliver digital experiences at the edge of the Internet. Fastly’s customers include The New York Times and Ticketmaster, which rely on the company to speed up digital download times to a matter of seconds, according to TechCrunch.
Fastly is offering 11.3 million shares at $14 to $16 each. If its IPO is priced at the mid-point of that range, Fastly will have a market cap of about $1.4 billion.
Luckin Coffee (LK proposed) says it is China’s second-largest and fastest-growing coffee network, in terms of number of stores and cups of coffee sold, according to the Frost & Sullivan Report. Luckin Coffee uses its mobile app to give its customers a 100 percent “cashier-less environment,” the prospectus says.
The company is offering 30 million American Depositary Shares (ADS) at $15 to $17 each.
The financial press is focused on Luckin Coffee’s push to challenge Starbucks, which dominates the coffee market in China.
(For more information about these companies and others on the IPO calendar, please check the profiles found on IPOScoop.com’s website.)
For the week of May 20, 2019, the calendar is blank, but anything can happen when the U.S. Securities and Exchange Commission’s filing window opens again for business on Monday morning.
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.