- Little IPO activity in the previous week highlighted GBT's phenomenal first-day pop.
- Pure Storage filed for IPO; SunGard cancelled its IPO, following FIS acquisition.
- Vox Media raised $200M from NBC Universal in the biggest round of the week.
The IPO Recap
The IPO calendar for August is almost empty as companies prefer not to go public this time of year because of either the August vacations or the declining market trend. In the week of August 10, only three companies went public: Global Blood Therapeutics (NASDAQ:GBT), Houlihan Lokey (NYSE:HLI), and Conifer Holdings (NYSE:CNFR) – Houlihan Lokey and Conifer Holdings are financial services firms, and GBT is a biopharmaceutical company that discovers, develops and commercializes novel therapeutics to treat grievous blood-based disorders. Its lead product is GBT440, a prophylactic therapy for patients with sickle cell disease (SCD), which is currently in Phase 1/2 clinical trial in both healthy subjects and SCD patients.
GBT offered six million shares at $20 (up from the initial mid-point price of $17); however, in the pre-opening bid, its price soared to $34.70, and that was the opening price for the public. GBT IPO open price of $34.7 reflected fantastic returns for the company’s early investors: Third Rock Ventures who bought 15M shares in Series A for $1 per share gained 3365% return, and Fidelity who bought 3M shares in Series B for $2.5 per share gained 1286%. Not only did GBT’s early investors have an excellent performance, but also investors who bought GBT at the opening generated a 24% return on the first day of trading after the stock closed at $43.1. A very impressive start for the biotech company that set its market cap at $1.3B with no revenues, $20M in net losses and one product in the pipeline.
The Week Ahead (August 17-23)
The week ahead continues the relaxed environment in the IPO arena, as there are no companies scheduled to go public during the week of August 17th. In case there are any developments or updates regarding this week’s IPO calendar, I will provide it in the comments section below.
IPO Market Events
While the previous week was light in tech IPO activity, two IPO related events attracted most of the attention in the market. The first event saw Pure Storage IPO come closer with the filing of pre-IPO form on Wednesday. The data storage unicorn, filed for an IPO seeking to raise $300M after the company raised more than $500M in the private market. In series F, Pure Storage’s latest funding round, leading venture capital funds like Greylock, Index Ventures and Redpoint Ventures bought 14.3M shares for $15.73 per share that put Pure Storage Valuation at $3B. A further analysis of Pure Storage will be available on Amigobulls later this week.
The second event of the week was SunGard’s acquisition by Fidelity National Information (NYSE:FIS) for $9.1B. The financial software developer SunGard had filed for IPO on June 4th, seeking to raise $100M a decade after it was acquired by a consortium of private equity funds that included Bain Capital, Blackstone Group LP, Goldman Sachs’s private-equity arm, KKR & Co., Providence Equity Partners Inc., Silver Lake and TPG. FIS purchased 100% of SunGard’s equity and withdrew the company’s prospectus thus cancelling the planned IPO. The very interesting software developer will remain private under FIS.
Private Market Developments
Among the dozens of funding rounds that took place in the past week, there were some exceptional and worth mentioning as bright prospects for future IPOs:
- Vox Media – A digital media company that owns leading brands like The Verge, Vox, Re/Code, etc. raised $200M from NBC Universal.
- View Dynamic Glass – A developer of energy saving smart house windows which can control light and heat while maintaining view and reducing glare. View raised $150M from private equity funds Corning Incorporated, Madrone Capital Partners and NZ Super Fund.
- Payoneer – A payment processing service provider that raised $50M in secondary market transactions.
For coverage of latest upcoming ipos and their valuations, check our IPO news section.