A diverse group of six deals are on the IPO calendar to raise nearly $1 billion in the week ahead.
A few deals appear ready to launch, including online real estate broker Redfin (RDFN) and bone disease biotech Clementia Pharmaceuticals (CMTA). Larger filers Venator Materials (VNTR), US LBM Holdings (LBM), Advantage Solutions (ADV) and Contura Energy (CTRA) could also join the calendar.
| US IPO Calendar | Link to Global Calendar | |||
| Issuer Business |
Symbol Exchange |
Deal Size($m) Market Cap($m) |
Price Range Shares Filed |
Lead Bookrunners |
| Calyxt New Brighton, MN |
CLXT Nasdaq |
$100 $477 |
$15 - 18 6,060,606 |
Citi Jefferies Wells Fargo |
| Developer of gene-edited crop traits spun out of Cellectis. | ||||
| Federal Street Acquisition Boston, MA |
FSACU Nasdaq |
$400 $500 |
$10 40,000,000 |
Citi BofA Merrill |
| SPAC formed by Thomas H. Lee Partners to acquire a healthcare business. | ||||
| Kala Pharmaceuticals Waltham, MA |
KALA Nasdaq |
$90 $389 |
$14 - 16 6,000,000 |
J.P. Morgan, BofA Merrill |
| Late-stage biotech developing nanoparticle therapies for ocular inflammation. | ||||
| TPG RE Finance Trust New York, NY |
TRTX NYSE |
$226 $1,244 |
$20 - 21 11,000,000 |
BofA Merrill Citi Goldman Sachs |
| TPG-managed mortgage REIT focused on commercial real estate debt. | ||||
| YogaWorks Culver City, CA |
YOGA Nasdaq |
$65 $187 |
$12 - 14 5,000,000 |
Cowen & Company Stephens Inc. Guggenheim Securities |
| Second-largest yoga studio chain with 50 locations in major coastal US markets. | ||||
| PetIQ Eagle, ID |
PETQ Nasdaq |
$85 $302 |
$14 - 16 5,666,667 |
Jefferies William Blair |
| Manufactures and distributes low-cost pet medications and other health products. | ||||
A big feat for a mortgage REIT
TPG RE Finance Trust (TRTX) is the week's largest company to go public by market cap, targeting $226 million at a valuation of $1.2 billion. Based on the most recent dividend, TPG RE offers an 8% annual yield at the midpoint. The year's two other notable commercial mortgage REITs, Granite Point (GPMT) and KKR Real Estate (KREF), have returned -2% and +3%, respectively, from their IPOs.
Wall Street strikes a pose with the first public yoga chain
YogaWorks (YOGA) plans to raise $65 million at a market cap of $187 million. Bought by Great Hill Partners in 2014, it has achieved a sizable presence in Los Angeles, New York and other coastal cities. While its massive, fragmented market provides plenty of acquisition targets, organic growth and profits have been more elusive: 1Q17 sales fell 7% to $14 million, with operating losses of $2 million.
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The pet play: Cheap pet meds maker PetIQ aims for the smart money
PetIQ (PETQ) is targeting $85 million at a market cap of $302 million. The company distributes low-cost versions of pet medications normally only sold by vets, mainly to major retailers like Walmart and Sam's Club. New product launches drove 1Q17 sales to increase 28% to $67 million, while net income swung positive to $4 million (6% margin). However, it carries $48 million in debt, and will only receive 38% of IPO proceeds.
Cream of the crop: Calyxt targets $100 million
Calyxt (CLXT), which is developing gene-edited crop traits, plans to raise $100 million at a market cap of $477 million. While its plans for healthier soybean oil and high-fiber wheat target multi-billion markets, a successful product roll-out is far from certain. Parent Cellectis (CLLS; 2015 US IPO) may invest up to $20 million on the offering.
A big day for nanoparticles
Kala Pharmaceuticals (KALA) plans to raise $90 million at a market cap of $389 million. Kala has completed Phase 3 trials for its first product, which is centered around an improved delivery method for eye drugs, a competitive market. Backed by Longitude VP and OrbiMed, insiders have indicated on $40 million (44%).
Federal Street Acquisition (FSACU) is the week's largest IPO at $400 million; the blank check company was formed by executives at Thomas H. Lee Partners to acquire a healthcare business.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. The Renaissance IPO Index is up 23.0% year-to-date, ahead of the S&P 500, which is up 9.9%. 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 19.5% year-to-date, while the ACWX is up 16.1%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include ABN AMRO Group and Worldpay. To find out if this is the best ETF for you, visit our IPO Investing page.
