Two companies priced US IPOs this past week, raising a combined $151 million, 68% from insiders. Both deals - a biotech and a billboard owner - traded up.
| 2 IPOs During the Week of June 12th, 2017 | |||||
| Issuer Business |
Deal Size ($mm) |
Market Cap at IPO ($mm) |
Price vs. midpoint |
First day return |
Return at 6/16 |
| Athenex (ATNX) | $66 | $655 | -8.3% | +14.2% | +26.3% |
| Developing oral chemotherapies and kinase inhibitors for cancer in the US/China. |
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| Boston Omaha Corporation (BOMN) |
$85 | $175 | 0% | +1.5% | +1.5% |
| Owns billboards and provides surety insurance. |
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After low-end pricing, strong start for cancer biotech Athenex
Athenex (ATNX) priced its $66 million IPO at $11, the low-end of the $11 to $13 range, and finished the week up 26%. The company develops oral chemotherapies and kinase inhibitors and operates in the US and China. Athenex has a large pipeline with seven product candidates and has large deals with the NY and Chinese governments to build new facilities. However, it is notable that insiders invested $55 million in the IPO, or 83% of the offering, which is the highest component of insider buying for an IPO in 2017. Its $655 million IPO market cap was the year's largest for a biotech, but its low tradable float (1.8% after insider buying) could cause volatile trading.
Boston Omaha increases offering
Boston Omaha Corporation (BOMN), which owns billboards and provides surety insurance, raised $85 million in an upsized offering. It sold 6.5 million shares at its midpoint of $13 but traded up just 1.5% on its first day. While the firm targets a large market opportunity, pro-forma revenue fell in 2016 and the 1Q17.
Avenue day-to-day
Fortress Biotech (FBIO) spinoff Avenue Therapeutics (ATXI), which is developing an IV formulation of the opioid tramadol, had planned to price a $50 million deal this past week, but it is now pricing on a day-to-day basis.
SPACs, REITs and Altice on deck
Several companies set terms this past week. Cable company Altice USA (ATUS) leads next week's offerings. Blank check companies Bison Capital Acquisition (BCACU), Constellation Alpha Capital (CNACU) and Hennessy Capital Acquisition III (HCAC.U) are set to price along with commercial REITs Safety, Income and Growth (SAFE), Four Springs Capital Trust (FSPR) and Granite Point Mortgage Trust (GPMT). Enterprise storage provider Tintri (TNTR) is scheduled for the following week.
US IPO Pipeline Update
This past week, CompuLab (CPUL), an Israeli manufacturer of passively cooled Mini PCs and low-power circuit boards, filed to raise $24 million. Another notable filing came from low-cost US airline carrier Frontier Group (FRNT), which disclosed plans to list on the Nasdaq.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. The Renaissance IPO Index is up 20.8% year-to-date, ahead of the S&P 500, which is up 8.6%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Ferrari (RACE) and Transunion (TRU). The Renaissance International IPO Index is up 14.5% year-to-date, while the ACWX is up 13.8%. 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.
