After a short holiday break, the IPO market has resumed being on fire.
11 deals launched their offerings. 10 are on the calendar for next week, including 7 that plan to price on the night of Wednesday, July 18.
As expected, the biotech surge has continued into the third quarter with five new launches. 2018 healthcare IPOs have performed well, with biotech IPOs averaging a 21% return from the offer price. At a proposed $1.8 billion valuation, preclinical Rubius Therapeutics (RUBY) is the largest company scheduled to go public. Two more healthcare companies also set terms: marijuana supplier Tilray (TLRY) and breast implant maker Establishment Labs (ESTA).
The largest upcoming IPO by deal size, oil and gas OEM AFG Holdings (AFGL), plans to raise $300 million. With just one energy IPO in the 2Q18, AFG could signal a more active energy sector in the 3Q.
Two regional banks are the smallest IPOs on the calendar. WA-based Coastal Financial (CCB) and CO-based First Western Financial (MYFW) are each raising less than $40 million. The 21 regional bank IPOs since the start of 2016 average a 37% return, with 19 trading above issue.
Bloom Energy (BE), valued at $3 billion in 2011, is going public at a proposed $1.7 billion valuation following a strong 2017 and 1Q18 for the fuel cell supplier. It plans to raise $252 million (20% from insiders).
| U.S. IPO Calendar | |||
|---|---|---|---|
| Issuer Business |
Deal Size Market Cap |
Price Range Shares Filed |
Top Bookrunners |
| Coastal Financial (CCB) Everett, WA |
$38M $166M |
$13 - $15 2,720,000 |
KBW Hovde Group |
| Community bank in Washington state. | |||
| Crinetics Pharmaceuticals (CRNX) San Diego, CA |
$80M $380M |
$15 - $17 5,000,000 |
JP Morgan Leerink Partners |
| Clinical-stage biotech developing oral therapies for rare endocrine diseases. | |||
| AFG Holdings (AFGL) Houston, TX |
$300M $1,347M |
$15 - $18 18,200,000 |
Goldman Credit Suisse |
| Oil and gas OEM specializing in pressure pumping and managed pressure drilling. | |||
| Allakos (ALLK) San Carlos, CA |
$96M $738M |
$15 - $17 6,000,000 |
Goldman Jefferies |
| Developing antibodies for allergic, inflammatory and proliferative diseases. | |||
| Constellation Pharma (CNST) Cambridge, MA |
$80M $430M |
$14 - $16 5,340,000 |
JP Morgan Jefferies |
| Developing epigenetic cancer therapies that modulate abnormal genes. | |||
| Establishment Labs (ESTA) Alajuela, Costa Rica |
$50M $321M |
$15 - $17 3,125,000 |
Jefferies Cowen |
| Fast-growing provider of silicone breast implants. | |||
| First Western Financial (MYFW) Denver, CO |
$37M $153M |
$19 - $21 1,850,000 |
KBW Stephens |
| Denver, CO-based bank and wealth manager for high net worth individuals. | |||
| Rubius Therapeutics (RUBY) Cambridge, MA |
$200M $1,795M |
$20 - $22 9,530,000 |
JP Morgan Morgan Stanley |
| Preclinical biotech developing novel therapies based on red blood cells. | |||
| Tilray (TLRY) Nanaimo, Canada |
$135M $1,439M |
$14 - $16 9,000,000 |
Cowen |
| Canadian vertically integrated supplier of medical cannabis. | |||
| Replimune Group (REPL) Woburn, MA |
$101M $500M |
$14 - $16 6,700,000 |
JP Morgan Leerink Partners |
| Developing oncolytic immunotherapies to fight solid tumors. | |||
| Bloom Energy (BE) Sunnyvale, CA |
$252M $1,719M |
$13 - $15 18,000,000 |
JP Morgan Morgan Stanley |
| Sells clean energy power generators based on solid oxide fuel cell technology. | |||
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Side note
"Growth is good" has been the IPO market's mantra in recent months. That partly explains the initial 30% pops from growth deals Domo (DOMO) and electroCore (ECOR). However, both broke issue on Monday.
