U.S. IPO Week Ahead: Only 2 IPOs Planned For A Quiet Thanksgiving Week

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Includes: GMDA, PT, STNE, TC, TLC, YETI
by: Renaissance Capital IPO Research

Market volatility is still impacting IPO activity, but the slow week ahead is due to Thanksgiving. Only two IPOs are slated to price during this quiet holiday week. China-based auto play TuanChe, which lowered its deal size by 25%, would be the sixth Chinese IPO since the beginning of October. A holdover from the prior week, biotech Taiwan Liposome Company could also price. We note that a decline in new filings this past month could indicate a slower-than-usual December.

Quiet periods for four recent IPOs are set to expire this coming week. Street research is expected on Monday for Brazilian electronic payments processor StoneCo (NASDAQ:STNE), premium outdoor equipment provider Yeti (NYSE:YETI), and China-based fintech platform Pintec (NASDAQ:PT). Street research for late-stage stem cell therapy biotech Gamida Cell (NASDAQ:GMDA) is expected on Wednesday.

U.S. IPO Calendar

Issuer
Business

Deal Size
Market Cap

Price Range
Shares Filed

Top
Bookrunners

Taiwan Liposome Co. (TLC)
Taipei City, Taiwan

$29M
$192M

$5.80
5,000,000

Cantor Fitz.

Developing lipid formulations of approved drugs for pain and eye disease.

TuanChe (NASDAQ:TC)
Beijing, China

$26M
$698M

$7.50 - $9.50
3,000,000

Maxim
AMTD Asset Management

Organizes auto shows in China.

TuanChe, which operates an automotive marketplace in China, plans to raise $26 million by offering 3.0 million ADSs at a price range of $7.50 to $9.50. At the midpoint of the proposed range, TuanChe would command a market value of $707 million. The company had previously planned to offer 4.0 million ADSs at the same range. Insiders intend to purchase up to $15 million of the IPO (now 59% of the deal). TuanChe, which was founded in 2010, booked $66 million in sales over the last 12 months. The Beijing, China-based company plans to list on the Nasdaq under the symbol TC. Maxim Group LLC and AMTD Asset Management are the joint bookrunners on the deal.

Taiwan Liposome Company, which is developing lipid formulations of approved drugs for pain and eye disease, plans to raise $29 million by offering 5.0 million ADSs at a price of $5.80. Insiders intend to purchase up to $20 million worth of the IPO (69% of the deal). At $5.80, it will command a market value of $190 million. The Taipei City, Taiwan-based company was founded in 1997. Currently listed on the Taipei Exchange (TPEx: 4152), the biotech plans to list on the Nasdaq under the symbol TLC. Cantor Fitzgerald is the sole bookrunner on the deal.

IPO Market Snapshot

The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 11/8/18, the Renaissance IPO Index was down 5.9% year-to-date, while the S&P 500 had a gain of 3.9%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include VICI Properties (OTC:VICI) and Spotify (NYSE:SPOT). The Renaissance International IPO Index was down 17.3% year-to-date, while the ACWX was down 10.2%. Renaissance Capital's International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include innogy and Siemens Healthineers.

Editor's Note: This article covers one or more microcap stocks. Please be aware of the risks associated with these stocks.