With IPO activity slowing down as we head into August, two deals are on the calendar for the week ahead to raise a combined $577 million. Venator Materials, a spinoff from chemical producer Huntsman, is the larger of the two and is looking to raise $477 million, which would be good for the tenth largest deal of the year. It is joined by Clementia Pharmaceuticals, a biotech focused on ultra-rare bone diseases. We also note that there are only two weeks left for pricings before the IPO market enters its expected summer hiatus in mid-August.
After the most high profile IPO of the year, Snap's first lock-up expires on Monday, when an additional 400 million shares become freely tradable. By the end of August, all outstanding shares, with the exception of 50 million that are subject to a one-year lock-up, will be freely tradable. This increased supply of 6.4x the current float is expected to put further downward pressure on the stock, which has experienced poor trading and has slid well below its IPO price.
| IPO Calendar | |||||
| U.S. Calendar | |||||
| Issuer Business |
Symbol Exchange |
Deal Size($m) Market Cap($m) |
Price Range Shares Filed |
Pricing Week |
Bookrunners |
| Clementia Pharmaceuticals Canada |
CMTA Nasdaq |
$100 $450 |
$13.00 - 15.00 7,150,000 |
7/31/17 | Morgan Stanley, Leerink Partners |
| Clinical-stage biotech focused on treating bone diseases. | |||||
| Venator Materials The Woodlands, TX |
VNTR NYSE |
$477 $2,232 |
$20.00 - 22.00 22,700,000 |
7/31/17 | Citi, Goldman Sachs, BofA Merrill, 5 more... |
| Manufacturer of titanium dioxide pigments and additives spun out of Huntsman. | |||||
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Venator Materials (VNTR), a leading manufacturer of titanium dioxide (TiO2) pigments and additives, is targeting $477 million at a $2.3 billion valuation. Venator has seen EBITDA quadruple in the 1H17 thanks to surging TiO2 prices, however a cyclical market and a fire at one of its plants may keep investors from becoming too optimistic. Parent Huntsman International is selling the entire deal and will retain a 79% post-IPO stake.
Clementia Pharmaceuticals (CMTA), a clinical-stage biotech focused on treating rare bone diseases, plans to raise $100 million at a market cap of $450 million. Positive Phase 2 data and strong biotech sector performance are balanced against a tiny target population and increased scrutiny of drug prices. Its group of marquee backers intend to purchase $30 million worth of shares in the offering.
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