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Seven deals join the November IPO calendar as market conditions improve
Analyst IPO Market Commentary
November has kicked off with seven new additions to
the IPO calendar
, including four health care deals, two financial firms and one software provider. The next seven days should see even more companies launch roadshows in order to begin trading before Thanksgiving.
The calendar filled up as both the S&P 500 and the Nasdaq Composite have fully recovered from August's sell-off, with both indices up over 8% in the past 30 days. Meanwhile, the VIX volatility index has continued its descent, closing below 20 each day for the past month. Thirty companies submitted initial filings during October, providing a large active backlog for more 4Q IPOs.
However, several signs point to a still-precarious IPO market. The 20 IPOs that began trading in October average a return of 7.5% - far better than the year-to-date average loss of 2%, but not enough to get most investors excited. October's three largest deals,
; +0.7%) and
; +2.6%), have largely disappointed. Issuers may not be excited about the valuations they are receiving, either: 17 of the past 20 IPOs came public below the original range. Multi-billion offerings from Digicel (
) and Albertsons (
) were postponed due to insufficient demand at the proposed price, and other LBOs appear to be delaying.
New launches for the week of November 9
Five IPOs are now set to price on Tuesday, November 10, including four biotechs. The largest, Australia-based
), filed and set terms to list its shares in the US; the late stage biotech is developing regenerative therapies based on adult stem cells. After postponing an IPO in February,
Advanced Accelerator Applications
) has come back with a higher valuation and new results on its lead candidate.
), which set terms on Friday, is a well-funded biotech ($169mm in pre-IPO cash) backed by Third Rock and partnered with Sanofi developing gene therapies for Parkinson's disease.
WAVE Life Sciences
) is a preclinical RNA biotech backed by RA Capital. Also on Tuesday, Midwestern commercial bank
) is set to raise $41 million at a market cap of $183 million.
On Thursday, November 11, mortgage company
) is set to raise $510 million - more capital than the week's other six IPOs combined. Learning management company
) is scheduled to be the first software provider to go public in the US since July's Rapid7 (
Mid-week round-up: 7 IPOs have set terms so far this week
Foothill Ranch, CA
Nonbank consumer lender focused on originating and selling home loans.
Salt Lake City, UT
Operates an online learning management system.
Developing regenerative medicine based on adult stem cells.
Developing gene therapies for rare retinal diseases.
WAVE Life Sciences
Preclinical biotech developing optimized RNA therapies for rare diseases.
Commercial bank with $1.4 billion in assets and 25 locations in KS and MO.
New York, NY
Developing an oral formulation of an existing therapy for pain and osteoarthritis.
IPO ETF manager Renaissance Capital (NYSE:
Others in the pipeline could go soon
More health care, financial and technology IPOs could be on the way. Payment services provider
) disclosed its 3Q15 financials last week, and is eligible to launch Wednesday morning. Online dating company
) and email security provider
), could set terms on Friday, along with a number of larger or revenue-generating health care IPOs, including
Hutchison China MediTech
). While the LBOs on file have delayed going public,
) both updated filings on Monday.
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