Two large and levered IPOs are scheduled to raise a combined $1 billion this week.
On-the-go IPO
“Known as the company that put iPads in airports”, founder led OTG EXP (OTG) is looking to fuel its capital intensive growth strategy and pay down debt through its planned $553 million IPO (17% of proceeds to CEO). For the thirty-nine weeks ended September 27, 2015, revenue grew 43% to $285 million, primarily due to new concession locations. Post-IPO, the company will be levered 4x LTM adj. EBITDA.
Don't trash this offering
Vertically integrated provider of solid waste collection, recycling and disposal, Advanced Disposal Services (ADSW) is planning to raise $450 million (58% insider) to pay down debt from its 2006 LBO. Post-IPO, the company will be levered 5.3x LTM adj. EBITDA.
Two more biotech pricings
Early-stage biotech AveXis (AVXS) is developing gene therapies for the rare but lethal genetic disorder spinal muscular atrophy (SMA Type 1) and plans to raise $85 million. Preclinical biotech Proteostasis Therapeutics (PTI) is developing combination therapeutics for the treatment of cystic fibrosis and plans to raise $50 million.
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IPO Pipeline update
Cancer Prevention Pharmaceuticals (CPP) set terms for a $25 million IPO. Blank check company Colony Global Acquisition (CCACU) filed and set terms to raise $300 million. Nordic Realty Trust (NORT) and Shimmick Construction (SCCI) are still day-to-day.
The IPO market's mid-February pause is coming up as companies typically use this time to update their year end numbers and also avoid pricing during the week of President's Day.
IPO Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. The Renaissance IPO Index is down 20% year-to-date, compared to -8% for the S&P 500. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Synchrony Financial (SYF), Alibaba (BABA) and Citizens Financial Group (CFG). The Renaissance International IPO Index is down 9% year-to-date, compared to -8% for ACWX. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF Holdings include NN Group and Recruit Holdings.
