IPO Weekly Preview: Summer Doldrums
The dog days of summer have caught up with the initial public offering (IPO) market. Only two of five companies scheduled to complete IPOs were able to do the deed last week, Otonomy Inc. (EARS) and C1 Financial Inc. (BNK). Results were mixed, as Otonomy rose 7% on its first day and closed up 1% on Friday afternoon. C1 Financial closed unchanged on its first day and closed down 1% on Friday. Curb your enthusiasm.
Two of last week’s planned IPOs are back on the schedule for the coming week. Capnia Inc., which also planned to come public last week, has postponed its IPO.
According to Renaissance Capital, 189 IPOs have priced in the United States so far this year, up 45.4% from a year ago. Total proceeds raised some $40.6 billion, up nearly 43% from 2013. In the month of July, IPO proceeds totaled $8.4 billion, the highest monthly total so far in 2014. So far in 2014, there have been a total of 242 IPOs filed, a rise of nearly 66% year-to-date. Proceeds raised from 2013 IPOs totaled $54.9 billion, the highest total in the past 10 years.
GWG Holdings Inc. operates as a secondary market for life insurance policies. The company has cut the number of shares on the offer from 1.6 million to 1 million in an expected price range of $11.50 to $13.50. At the midpoint, the company’s market cap would be about $70 million and it would raise proceeds totaling $12.5 million. Pricing and trading dates have not been set. The stock will trade on the the Nasdaq under the ticker symbol GWGH.
Zosano Pharma Corp., the other holdover from last week, is a clinical stage specialty pharmaceutical company that has developed a proprietary transdermal microneedle patch system to deliver its existing drugs through the skin. The company plans to offer 6.4 million shares in a price range of $10 to $12, and it expects to raise gross proceeds of around $70 million. The pricing and trading dates are not set. The stock will trade on the Nasdaq under the ticker symbol ZSAN.
Sino Mercury Acquisition Corp. is a blank-check company that plans to focus its business on companies located in China that operate in the non-traditional financial industry, including but not limited to micro-credit companies, financial leasing companies, and guarantors. The firm plans to sell 4 million units at $10 a share, raising $40 million against a market cap of $52.1 million. No dates are set. The company’s units will trade on the Nasdaq under the ticker symbol SMACU.
