There are three deals raising a total of $194 million on the calendar for the week ahead. Each deal is raising less than $100 million. The week’s two biotechs, Athenex and Avenue Therapeutics, are joined by a billboard owner, Boston Omaha.
We expect the number of pricings will come down in June from May’s 17 deals as the active pipeline has been steadily shrinking in 2017, although we note that six companies have filed for IPOs this month already.
| IPO Calendar | All | ||||
| U.S. Calendar | |||||
| Issuer Business |
Symbol Exchange |
Deal Size($m) Market Cap($m) |
Price Range Shares Filed |
Pricing Date |
Bookrunners |
| Athenex Buffalo, NY |
ATNX Nasdaq |
$72 $720 |
$11.00 - 13.00 6,000,000 |
Wk of 6/12 |
Credit Suisse, Deutsche Bank, J.P. Morgan |
| Developing oral chemotherapies and kinase inhibitors for cancer in the US and China. | |||||
| Avenue Therapeutics New York, NY |
ATXI Nasdaq |
$50 $108 |
$9.00 - 11.00 5,000,000 |
Wk of 6/12 |
Raymond James |
| Fortress Biotech spinoff developing an IV formulation of the opioid tramadol. | |||||
| Boston Omaha Corporation Boston, MA |
BOMN Nasdaq |
$72 $161 |
$12.00 - 14.00 5,500,000 |
Wk of 6/12 |
Cowen & Company |
| Owns billboards and provides surety insurance. | |||||
Billboards, real estate and insurance, oh my!
Boston Omaha Corporation (BOMN) is looking to raise $72 million at a $161 million valuation in an uplisting to the Nasdaq. The company owns billboards and real estate and also provides surety insurance. These unrelated businesses combined for $4 million of revenue in 2016 and Boston Omaha expects to continue to grow through acquisitions, such as the two insurance businesses it purchased in 2016.
Just their 2 percent
Athenex (ATNX) is seeking $72 million at a $720 million valuation as it develops oral chemotherapies and kinase inhibitors. Its lead candidate, Oraxol, is an oral chemotherapies currently enrolling patients in a Phase 3 trial for the treatment of metastatic breast cancer. Backed by the founder of Tencent, Athenex’s existing owners plan to invest $55 million on the offering (76% of the deal), which would result in a tradable float of just 1.4 million shares at the midpoint (2.6% of shares outstanding).
A biotech’s biotech
Avenue Therapeutics (ATXI), which is developing an IV formulation of the opioid tramadol, is looking for $50 million as it enters Phase 3 trials with data expected in the 2Q18. The company’s sole product candidate faces stiff competition in a well-established postoperative pain treatment market. Avenue is being spun off from biotech investment firm Fortress Biotech (Nasdaq: FBIO), and at its proposed $108 million valuation it would represent almost one quarter of Fortress’ market cap.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. The Renaissance IPO Index is up 21.8% year-to-date, ahead of the S&P 500, up 8.6%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Ferrari (RACE) and First Data (FDC). The Renaissance International IPO Index is up 15.1% year-to-date, while the ACWX is up 14.7%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Worldpay and ABN Amro. To find out if this is the best ETF for you, visit our IPO Investing page.
