With Tuesday's election gripping the nation, the US IPO market has no major deals this week. Three micro-cap companies are on the IPO calendar to raise a combined $80 million in week ahead; each with a deal size of less than $30 million. Two are already listed on lower-liquidity exchanges.
Don't forget that you can always cast your vote for upcoming deals on our IPO Poll.
| Renaissance Capital's IPO Calendar - Week of 11/7/2016 | ||||
| Issuer Business |
Symbol Exchange |
Deal Size $mil |
Price Range Shares Filed |
Lead Manager(s) |
| PetroShare Centennial, CO |
PRHR NYSE MKT |
$28 | $4.63 6,000,000 |
Roth Capital |
| Oil and gas E&P operating in Colorado's Denver-Julesburg Basin. | ||||
| Motif Bio New York, NY |
MTFB Nasdaq |
$26 | $12.36 2,125,000 |
H.C. Wainwright |
| Late-stage biotech developing antibiotics for multi-drug resistant bacteria. | ||||
| SenesTech Flagstaff, AZ |
SNES Nasdaq |
$26 | $12.00 - $14.00 2,000,000 |
Roth Capital |
| Commercializing a non-lethal rodent control chemical that lowers rat fertility. | ||||
Rat poison alternative goes public
Senestech (SNES) plans to raise $26 million at a diluted market cap of $152 million - the week's largest. Founded by its CEO in 2004, the company is raising IPO proceeds to launch ContraPest, a chemical designed to decrease rat fertility in places like subways and food production facilities, following its recent EPA approval. It would be the only product of its kind on the market, but the pre-revenue company faces competition from widely-available poisons offered by Bayer, Syngenta and others.
Motif Bio (MTFB) is back on the US IPO calendar, hoping to raise around $26 million. The antibiotic biotech last attempted to price in August, but since then has lowered its share offering, added warrants and disclosed a concurrent European placement. Listed on London's AIM market (MTFB), Motif plans to raise capital to finish Phase 3 trials and avoid running out of cash. Shareholder Invesco plans to invest $8.6 million on the IPO.
PetroShare (PRHR), which is also listed (OTCQB: PRHR), plans to raise about $28 million and begin trading on the NYSE MKT. Like October IPO Extraction Oil & Gas (XOG), PetroShare owns wells in Colorado's Denver-Julesburg Basin. However, the company has not yet produced revenue, and carries $2 million in pre-IPO cash and $4.6 million in debt. It notes that CEO Stephen Foley played for the Denver Broncos for 11 seasons in 1976-1986, which included two Super Bowl appearances.
Institutional investors use Renaissance Capital's Pre-IPO Research to spot the best IPOs.
Follow us on Twitter (@IPOtweet) for IPO news as it happens and register for our updates on the IPO market.
IPO Pipeline update: Few filings are further proof of a slow year-end
The past week saw no new IPO filings or notable updates. Four companies withdrew from the pipeline: Offshore oil rig operator Ocean Rig Partners LP (ORLP; $305mm deal size), acquired E&P Vantage Energy (VEI; est. $600mm), steel producer EVRAZ North America (ENA; est. $300mm) and biotech Cancer Prevention Pharmaceuticals (CPP; $16mm).
While companies have a narrow window to IPO before Thanksgiving, the majority of the year's remaining deals will arrive in the first two full weeks of December. To that end, expect new filings to roll in before month-end. Of the companies currently on file, notable names with up-to-date filings include Athene Holdings (ATH), CBS Radio (CBSR.RC), IC Power (ICP), Playa Hotels (PLYA), Mauser Group (MSR) and JELD-WEN (JELD).
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. The Renaissance IPO Index is down 3% year-to-date, while the S&P 500 is up 4%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Citizens Financial Group (CFG) and Alibaba (BABA). The Renaissance International IPO Index is down 2% year-to-date, compared to +3% for ACWX. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Recruit Holdings and Cheil Industries. To find out if this is the best ETF for you, visit our IPO Investing page.
