Jensyn Acquisition, a blank check company formed to acquire consulting businesses, announced terms for its IPO on Monday.
The Freehold, NJ-based company plans to raise $40 million by offering 4.0 million units for $10 each. At that price, Jensyn Acquisition would command a fully diluted market value of $52 million. Insiders plan to invest $2.5 million in a concurrent private placement at $10 per unit. Units consist of one share of common stock and one-half of one warrant, exercisable as whole warrants at $11.50.
11/20/15 Analyst IPO Blog
The later in 2015 that a company has filed, the more likely it is that it will price down in its IPO.
In 2015, 168 IPOs have raised $29.5 billion, pricing an average of -4.8% below their midpoints. Before Labor Day, 35% of 131 deals priced below the range; after Labor Day, 73% of 37 deals did. It has been a tough year for the IPO market overall, but perhaps no one has felt it more than the venture capital firms and private equity groups that have seen pushback on the pricing of their holdings.
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