- After a quiet few weeks, four healthcare companies are scheduled to go public this week.
- Two payment processing companies plan IPOs this year – First Data (Q3) and Square (Q4).
- Ride-hailing service providers Uber, Didi Kuaidi, and BlaBlaCar raised a total amount of $2.8B in different rounds.
The IPO Recap
Welcome back to the Tech IPO News Weekly. The just concluded week had healthy signs for investors. Market volatility is dropping, and correction in leading indices has nearly halted as shown in Chart 1 below. As a result of the markets calming down, IPO activity is slowly returning with another two companies filing for IPO and a number of IPO terms announced.
In the previous week, some biotech companies filed for IPO. Most of them were small, below-$5M IPOs listed on the OTC markets, and only one – AnaptysBio – filed for a Nasdaq IPO, seeking to raise $86.25M to support its current products development and their clinical trials. The second IPO filing was by PSAV. Further details on both IPOs are in the table below.
|Company Name||Symbol||Exchange||Amount (Macy's (NYSE:M))||Sector||Summary|
|PSAV||PSAV||NYSE||100||Information Technology||PSAV is an audiovisual and event technology service provider.|
|AnaptysBio||ANAB||NASDAQ||86.25||Healthcare / Biotech||AnaptysBio is a biotechnology company developing slutions for inflammation and immuno-oncology.|
The Week Ahead: September 14
As the IPO market slowly awakens, there are four IPOs of healthcare companies (three are biotech; one is medical devices) seeking to raise small amounts of money from the public:
|Company Name||Symbol||Exchange||Sector||Summary||Amount Offered||Price range||IPO Date|
|Nabriva Therapeutics||NBRV||NASDAQ||Healthcare / Biotech||Nabriva is a clinical stage biopharmaceutical company engaged in the research and development of novel anti-infective agents to treat serious infections, with a focus on the pleuromutilin class of antibiotics.||$117.3M||$15 - $17||18-Sep-15|
|Penumbra||PEN||NYSE||Healthcare / Medical Devices||Penumbra is a global interventional therapies company that designs, develops, manufactures and markets innovative medical devices.||$122.4M||$25 - $28||18-Sep-15|
|RegnexBio||RGNX||NASDAQ||Healthcare / Biotech||RegnexBio is a biotechnology company focused on the development, commercialization and licensing of recombinant adeno-associated virus (AAV) gene therapy.||$121.3M||$17 - $19||17-Sep-15|
|Cerecor||CERC||NASDAQ||Healthcare / Biotech||They are a clinical-stage biopharmaceutical company with the goal of becoming a leader in the development of innovative drugs that make a difference in the lives of patients with neurological and psychiatric disorders.||$27M||$6 - $7||15-Sep-15|
Except Penumbra, all of the companies are small biotech startups working to develop/test their first line of products. Biotech IPOs, in general, and these IPOs, in particular, are probably more attractive to biotech expert investors and not to the common retail investor. It is too early to say whether these companies have viable solutions that could receive an FDA approval and penetrate their particular markets successfully – as we saw in recent years, small IPOs like these can either skyrocket or decline sharply. Investors who do not fully understand the business model, market dynamics, and technology behind any specific solution should avoid these offerings.
IPO Market Events
The Square IPO saga continues as Bloomberg reported this week that Square decided to go ahead with its IPO and to hold it in the fourth quarter of the year. Jack Dorsey, Twitter’s interim CEO and Square’s CEO, remains in his position in the company towards the IPO. However, Square’s documents are still not available to the public as the company filed for IPO under a confidential process, available to companies with revenues below $1B.
Another payment processing company, First Data, is planning to go public this year is First Data. The private equity backed company initially filed its S1 with the SEC in July and plans to hold its IPO by the end of this month, seeking to raise $2.5B in what could be the biggest American IPO of the year. KKR (NYSE:KKR), a PE-fund, took the company private in 2007 for almost $30B and is trying to minimize its debt created in the LBO and reduce its position in First Data. A further analysis of the First Data IPO will be available later this week on Amigobulls.
Private Market Developments
These are the transactions worth mentioning in the private equity market from the previous week:
- Uber – Another massive funding round for the ride-hailing market leader, raising $1.2B for Uber China from the Chinese giant, Baidu (NASDAQ:BIDU). This significant investment is part of the strategic alliance between the two companies to develop Uber’s presence in China by integration with local maps and services.
- Didi Kuaidi – Uber’s biggest rival in China raised another $1B in an extension to the company’s previous $2B round held in July. The company, which is a combination of the two largest taxi-hailing companies in China, Didi Dache and Kuaidi Dache, raised a total of $3.6B in 2015, valuing the company at $16B – still way below Uber’s $51B valuation. A further analysis of Didi Kuaidi will be available later this week on Amigobulls.
- BlaBlaCar – Another of Uber’s competitor, the French BlaBlaCar raised $160M in a series D funding round, valuing the company at $1.2B. BlaBlaCar is currently expanding globally and has opened offices around the world to solve any regulatory difficulties in each potential new country.
Disclosure: The information provided in this article is for informational purposes only and should not be regarded as investment advice or a recommendation regarding any particular security or course of action. This information is the writer's opinion about the companies mentioned in the article. Investors should conduct their due diligence and consult with a registered financial adviser before making any investment decision. Lior Ronen and Finro are not registered financial advisers and shall not have any liability for any damages of any kind whatsoever relating to this material. By accepting this material, you acknowledge, understand and accept the foregoing.