Today - Thursday, October 8, 2015
- CPI Card Group (NASDAQ:PMTS) lowers the size of its IPO for the second time.
- The company now plans to raise $150M by issuing 15M shares at a price of $10.
- The S-1 issued last month called for a raise of close to $300M.
- The latest S-1 filing
- Previously: CPI Card Group sets terms for IPO (Sep. 22 2015)
- Previously: CPI Card Group downsizes size of IPO (Oct. 07 2015)
- Strong demand for shares of Ferrari (FRRI, FRARI) could push valuation on the company up to €10B to €11B ($11.29B - $12.42B), sources tell Bloomberg.
- The luxury automaker is expected to release its pricing range as early as tomorrow.
- Fiat Chrysler Automobiles (NYSE:FCAU) is slicing off 10% of Ferrari in order to raise funds for expansion.
- Previously: Sizzling demand reported for Ferrari IPO shares (Sep. 30 2015)
Wednesday, October 7, 2015
- Duluth Trading (DLTH) files for a $115M IPO on the Nasdaq exchange.
- The workwear company reported revenue of $208.9M and net income of $24.1M for the fiscal year ending last February 1.
- Duluth plans to accelerate its retail expansion and says it sees up to 100 markets it can enter in the U.S. with new stores.
- Rival Boot Barn (NYSE:BOOT) went public last year and trades about 14% over where shares were priced.
- SEC Form S-1
- Pure Storage (NYSE:PSTG) opened at $16.74 and is currently at $16.68, 1.9% below its $17 IPO price.
- Pure, generally viewed as a leader in the flash storage array market along with EMC, IBM, and HP, is valued at $3.09B. The debut is likely to disappoint those hoping Pure's offering would validate IPO demand for fast-growing/richly-valued tech companies remains strong following the Nasdaq's recent selloff.
- Prior Pure Storage coverage, IPO analysis, prospectus
10:15 AM| 10:15 AM | Comment!
Tuesday, October 6, 2015
- Pure Storage (Pending:PSTG) is set to price its IPO at $17, the midpoint of its range, which values the firm at $3.1B.
- The flash data storage maker is expecting to sell 25M shares and thus raise $425M.
- The stock will start trading tomorrow. Its fortunes are considered a bellwether for tech investing in the coming months after a difficult summer for technology IPOs.
- It posted revenues of $74.1M in fiscal Q1, with a net loss of $49.1M.
- Previously: Pure Storage set to begin trading on Oct. 7 (Oct. 01 2015)
- American Farmland Company will look to raise more than $100M, selling 12M shares at an expected price range of $8.50-$10.50 each. It will trade on the NYSE under the symbol AFCO.
- The internally managed REIT owns farmland in California, Illinois, and Florida.
- Others in the business include Farmland Partners (NYSE:FPI) and Gladstone Land (NASDAQ:LAND).
- Any serious student of the market knows that the performance of initial public offerings is a very reliable indicator of investor sentiment, both for the market in general and the respective sector in particular. Considering the medical sector's travails, the performance of recent biotech IPOs is following the script precisely.
- Novocure (NVCR -14.4%) debuted on October 2 at $22. Trading today at $15.50, down 30%. The original range was $26 - 29.
- REGENXBIO (RGNX -4.6%) debuted on September 17 at $22. Trading today at $21, down 5%, but up from the original range of $17 - 19.
- Nabriva Therapeutics (NBRV +2.5%) debuted on September 18 at $10.25. Trading today at $10.00, down 2%.
- Mirna Therapeutics (MIRN -0.7%) debuted on October 1 at $7. Trading today at about the same price, although the original range was $13 - 15.
- Edge Therapeutics (EDGE -3.4%) debuted on October 1 at $11. Trading today at $18, up 64%. The original range was $14 - 16.
- Covestro, the polymer business spun off from drugmaker Bayer (OTCPK:BAYRY), rose as much 12.5% in its first day of trading today in Germany's largest IPO in more than eight years.
- The sale was more than three times over-subscribed, Chief Financial Officer Frank Lutz declared.
- The rise comes after Covestro was forced to scale down its IPO amid a turbulent period in global stock markets, seeking to raise €1.5B (instead of €2.5B) and slashing its price range to €24 (from an initial €26.50-€35.50).
- Previously: Bayer to list Covestro in Q4 (Sep. 04 2015)
Saturday, October 3, 2015
- Laureate Education (LAUR) files for an $100M IPO. The deal size could eventually be pushed to as high as $1B, according to Renaissance Capital.
- The for-profit education company reported revenue of $4.414B in 2014 and operating income of $299.5M. Also of note, Laureate Education has a close prior association with Bill Clinton and the Clinton Global Initiative.
- KKR (NYSE:KKR) was a lead investor in the group that took Laureate private in 2007.
- SEC Form S-1
Friday, October 2, 2015
12:54 PM| 12:54 PM | Comment!
- Neiman Marcus (Pending:NMG) eliminated 500 corporate and support jobs as it looks to get lean ahead of its IPO, although there are questions now on if the company will go public this year or next.
- Reports from yesterday indicate the department store operator is dragging its feet in handing out IPO roles to eager bankers.
Thursday, October 1, 2015
- Flash storage array upstart Pure Storage (Pending:PSTG) plans to price its 25M-share IPO on Tuesday, and begin trading the following day. For those interested, the IPO underwriters are Morgan Stanley, Goldman, Barclays, BofA/Merrill, Pac Crest, Stifel, Raymond James, Evercore, and Allen & Co. (prospectus)
- In spite of recent market turmoil and a related slowdown in IPO activity, Pure's growth profile and status as a flash array market leader (along with EMC, HP, and IBM) could yield a strong debut ... provided concerns about heavy spending/losses don't get in the way. Over the 6 months ending July 31, the company had revenue of $158.7M (+167% Y/Y), and a net loss of $113M. Sales/marketing spend totaled $107.8M, and R&D $69.9M.
- For now, Pure's IPO price range remains at $16-$18, That implies a valuation range of $2.96B-$3.33B.
- Prior Pure Storage coverage, IPO analysis
- Malvern, PA-based Aclaris Therapeutics (Pending:ACRS) is on go for its IPO of 5M shares of common stock at $14 - 16.
- The clinical-stage specialty pharmaceutical firm develops topical drugs for unmet needs in dermatology. Its lead product candidate is Phase 2-stage A-101, a high concentration hydrogen peroxide topical solution for the treatment of seborrheic keratosis (SK), a common benign skin tumor. A Phase 3 study in SK is set to begin in Q1.
- 2014 Financials ($M): Operating Expenses: 8.5 (+62.3%); Net Loss: (8.5) (-62.7%); Cash Burn: (7.6) (-55.2%).
- South San Francisco, CA-based CytomX Therapeutics (Pending:CTMX) is poised for its IPO of 6,666,667 shares of common stock at $14 - 16.
- The biopharmaceutical firm develops oncology-focused antibody therapeutics based on its proprietary Probody technology platform, which applies the prodrug concept to create a therapeutic antibody that remains inactive until it reaches the tumor. This has the potential to maximize the specificity to the tumor while enhancing the safety profile. The prodrug method has been used with small molecule drugs but not with therapeutic antibodies. The company believes Probody will enable it to improve the combined efficacy and safety profile of cancer immunotherapies, antibody drug conjugates (ADCs) and T-cell-recruiting bispecific antibodies.
- Its lead product candidate, CX-072, is an antibody that targets PD-L1. The clearance of an IND, which will enable the start of clinical trials, is anticipated for H2 2016.
- 2014 Financials ($M): Revenue: 5.1 (+471.7%); Operating Expenses: 34.8 (+119.9%); Net Loss: (34.9) (-84.6%); CF Ops: 31.8 (+497.5%).
- 2015 Financials ($M) (6 mo.): Revenue: 3.8 (+190.9%); Operating Expenses: 14.2 (-33.6%); Net Loss: (15.2) (+36.9%); CF Ops: (11.5) (-19.3%).
- The initial lackluster performance of two medical IPOs debuting today reinforces the adage that "timing is everything" in the stock market. The biotech sector has been bruised and bloodied since peaking on July 21.
- Surgery Partners (NASDAQ:SGRY) currently exchanges hands at ~$17.80, 6% below the offer price of $19, on turnover of 4.8M. The initial price range was $23 - 26.
- Mirna Therapeutics (NASDAQ:MIRN) is flat with the $7 offer price on modest turnover of 851K. Its initial price range was $13 - 15.
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