Zosano Pharma (NASDAQ:ZSAN) is the only US IPO planned for this week, as the IPO market's annual August hiatus carries on. The early-stage biotech has been on the calendar to price in each of the past four weeks, but continues to delay its offering. Of the past 10 biotech IPOs, only Avalanche Biotechnology (AAVL) and Innocoll (NASDAQ:INNL) trade over 2% above the IPO price, even as the group was discounted 15% below the midpoint on average. With 112 IPOs in the pipeline looking to raise $45 billion (including Alibaba's soon-expected $20 billion deal) and the Renaissance IPO ETF (NYSEARCA:IPO) at $23, September IPO activity is poised to pick up where July left off.
The following IPO is expected to price this week:
Zosano Pharma, a biotech developing a transdermal delivery system to treat osteoporosis, plans to raise $70 million by offering 6.4 million shares at a price range of $10 to $12. At the midpoint of the proposed range, Zosano would command a market value of $139 million. Zosano Pharma, which was founded in 2007, booked $3 million in collaboration revenue over the last 12 months. The Fremont, CA-based company plans to list on the NASDAQ under the symbol ZSAN. Wedbush PacGrow, Ladenburg Thalmann and Roth Capital are the joint bookrunners on the deal.
IPO market snapshot
So far this year, 189 IPOs have raised $40.6 billion and produced an average first day return of 13%. The Renaissance IPO ETF, a float cap-weighted basket of newly public companies and indicator of post-IPO performance, has gained 5.3% compared with 7.6% for the S&P 500. Over the last 30 days, the IPO ETF has risen 2.2% compared with 0% for the S&P 500, suggesting that the IPO market remains receptive to new issuance. The active IPO pipeline includes 112 companies looking to raise a total of $45.4 billion.