Week Ahead: 4 More IPOs Set Up May 2016 To Be Most Active Month YTD

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Includes: CLSD, MRUS, MSBI, PZRX, USFD
by: Renaissance Capital IPO Research

There are four companies set to debut in the week ahead, but only one company with substantial revenue and profit - small-cap Argentinian bank Grupo Supervielle (NYSE:SUPV). Three additional deals launched and are set to price in May including the second-largest food distributor US Foods (NYSE:USFD), set to raise $1 billion. If all deals on the calendar price successfully, that would mark 13 deals in May, an improvement over April's eight deals and the first double digit deal month since November 2015. While there could be launches early in the week ahead, the next two weeks may be slow for launches as companies tend to avoid marketing around the Memorial Day holiday.

Renaissance Capital's IPO Calendar - Week of 5/16/2016
Issuer
Business
Symbol
Exchange
Deal Size
$mil
Price Range
Shares Filed
Lead Manager(s)
Grupo Supervielle
Buenos Aires, Argentina
SUPV
NYSE
$250 $11 - $13
20,833,332
Morgan Stanley
BofA Merrill Lynch
Argentinian bank with over $2 billion in assets.
Merus
Utrecht, Netherlands
MRUS
Nasdaq
$65 $14 - $16
4,333,333
Citi
Jefferies
Developing bispecific antibody treatments for solid tumors.
PhaseRx
Seattle, WA
PZRX
Nasdaq
$22 $5 - $7
3,700,000
Laidlaw & Company (NASDAQ:UK)
Roth Capital
Preclinical biotech developing treatments for inherited enzyme deficiencies in the liver
CF Corporation
New York, NY
CFCOU
Nasdaq
$600 $10
60,000,000
Citi
BofA Merrill Lynch
Credit Suisse
Blank check company formed by executives from Blackstone and FNF.
Click to enlarge

Grupo Supervielle - This family-owned and led bank is looking to expand its capital base to take advantage of improved consumer and investor sentiment in Argentina since the market-friendly President Macri took office in December 2015. That said, there are ongoing political and economic uncertainties in Argentina which may limit its growth prospects, most notably its 30% inflation rate. It plans to dual list in New York and Buenos Aires.

Merus (NASDAQ:MRUS) - This Dutch, 13-year old biotech has a lead candidate in a Phase 1 / 2 trial for the treatment of various HER2-expressing cancers including some breast, colorectal and lung cancers; data is expected in the 2H16. It is at least 5 years from gaining approval for these drugs which are targeting an $8.7 billion market. Notable shareholders include Novartis (10.2% post-IPO), J&J (7.3%) and Pfizer (6.8%). Insiders have indicated for 50% of the deal.

PhaseRx (Pending:PZRX) - A microcap, preclinical biotech, PhaseRx is looking to raise money to achieve preclinical proof of concept and ramp manufacturing for its lead candidate. Notable shareholders include ARCH Venture Partners (16.0% Post-IPO), Versant Ventures (11.4%) and 5AM Ventures (7.1%). Insiders have indicated for 42% of the deal.

CF Corporation (CFCOU) - This SPAC is led by financial services veterans Chinh Chu, who spent 25 years at Blackstone and currently serves as Chairman of 2014 IPO Catalent (NYSE:CTLT), and William Foley, who currently serves as Executive Chairman of 2015 IPO Black Knight Financial Services (NYSE:BKFS). Anchor investors have agreed to invest an additional $510 million upon the closing of the first acquisition.

IPO Pipeline update
Three deals set to price the week of May 25: Regional bank Midland States Bancorp (MSBI) set terms to raise $100 million, combination drug-device developer Clearside Biomedical (NASDAQ:CLSD) set terms to raise $60 million and the second-largest US foodservice distributor US Foods set terms to raise $1 billion, which would be the largest non-REIT offering of 2016.

IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. The Renaissance IPO Index is down 8.2% year-to-date, while the S&P 500 is up 0.1%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Alibaba (NYSE:BABA), Synchrony Financial (NYSE:SYF) and Citizens Financial Group (NYSE:CFG). The Renaissance International IPO Index is down 3.9% year-to-date, compared to -1.3% for ACWX. Renaissance Capital's International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include NN Group and Aena S.A.