The only IPO on the calendar in the week ahead, cannabis facilities REIT Innovative Industrial Properties (IIPR), is looking to raise a downwardly revised $100 million.
November has been a slow month for the IPO market with only three pricings, down sharply from October's 19 pricings and September's 16, yet this was largely attributed to election uncertainties and the Thanksgiving holiday. With those two events in the rear view and indices breaching all-time highs, the IPO market is primed for a few more deals in the coming weeks. Some of the larger names in the near term pipeline include Apollo-backed life insurance and annuity provider Athene Holding (ATH), oil and gas E&P WildHorse Resource Development (WRD) and Expedia spin-off trivago (TRVG).
| IPO Pricings Week of November 28 | |||||
| Issuer Business |
Symbol Exchange |
Deal Size($m) Market Cap($m) |
Price Range Shares Filed Pricing Date |
Bookrunners | |
| Innovative Industrial Properties San Diego, CA |
IIPR NYSE |
$100 $101 |
$20 5,000,000 |
Ladenburg Thalmann, Compass Point |
|
| Newly-formed REIT focused on medical-use cannabis cultivation facilities. | |||||
Innovative Industrial Properties (IIPR) delayed its IPO, which was set to price on Monday November 21, and subsequently updated its filing twice. The first update announced a potential forfeiture of zero-cost basis shares for management and the second confirmed that management will forfeit 100% of those shares and also decreased the propose deal size from $175 million to $100 million. The delay of the IPO, forfeiture of management shares and decrease in deal size highlight the difficulties in attracting investors to this newly-formed and highly-specialized REIT, despite a strong management track record. If it prices, Innovative Industrial will be the first REIT focused exclusively on cannabis facilities.
Next week could also see the pricing of smaller, day-to-day deals Eagleline Acquisition (IGLEU), a health care-focused blank check company looking to raise $150 million, PetroShare (PRHR), a micro-cap oil and gas E&P looking to raise $28 million, and SenesTech (SNES), which is producing a rodent control chemical, looking to raise $20 million.
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