Four companies set terms on Monday morning for Late July IPOs

The brief hiatus in the IPO market for the July 4th holiday is now over.

Four companies launched their respective IPOs on Monday morning — all with a trade date of July 20th. While the official pipeline is not overloaded in terms of quantity, we continue to hear from our sources that “deals are coming”. It is a solid sign that the companies that are coming public are doing so in a timely manner in terms of time spent between a first filing and a filing with terms. 

These four deals are going public on the heels of a strong finish (in terms of quantity) to the last week of June when nine companies went public.

Below are the terms set on Monday morning:

Company: Calyxt, Inc.
Symbol: CLXT
Description: They are a consumer-centric, food- and agriculture-focused company. By combining our leading gene-editing technology and technical expertise with our innovative commercial strategy, we are pioneering a paradigm shift to deliver healthier specialty food ingredients, such as healthier oils and high fiber wheat, for consumers and agriculturally advantageous crop traits, such as herbicide tolerance, to farmers.
Shares: 6.06 million
Price Range: $15.00-$18.00
Trade Date: 7/20
Underwriter(s): Citigroup, Credit Suisse, Jefferies, Wells Fargo Securities
Co-Manager: BMO Capital Markets, Ladenburg Thalmann
Terms Added: 7-10-17

Company: TPG RE Finance Trust, Inc.
Symbol: TRTX
Price: $20.00-$21.00
Shares: 11 million
Trade Date: 7/20
Description: They are a commercial real estate finance company sponsored by TPG. We directly originate, acquire and manage commercial mortgage loans and other commercial real estate-related debt instruments for our balance sheet.
Underwriter(s): BofA Merrill Lynch, Citigroup, Goldman Sachs & Co., Wells Fargo Securities, Deutsche Bank Securities,J.P. Morgan, Morgan Stanley, Barclays
Co-Manager(s): TPG Capital BD, LLC, JMP Securities
Terms Added: 7-10-17

Company: Kala Pharmaceuticals, Inc.
Symbol: KALA
Price: $14.00-$16.00
Shares: 6 million
Trade Date: 7/20
Description: They are a biopharmaceutical company focused on the development and commercialization of therapeutics using our proprietary nanoparticle-based Mucus Penetrating Particles, or MPP, technology, with an initial focus on the treatment of eye diseases.
Underwriter(s): J.P. Morgan, BofA Merrill Lynch, Wells Fargo Securities
Co-Manager: Wedbush PacGrow
Terms Added: 7-10-17

Company: YogaWorks, Inc.
Symbol: YOGA
Price Range: $12.00-$14.00
Shares: 5 million
Trade Date: 7/20
Description: They are one of the largest and fastest growing providers of high quality yoga instruction in the U.S., with almost 3 million student visits in 2016 and 50 company-owned studios as well as our Internet-based digital media service, MyYogaWorks.com
Underwriter(s): Cowen and Company, Stephens Inc., Guggenheim Securities
Co-Manager(s) Roth Capital Partners, Imperial Capital
Terms Added: 7-10-17

The IPO market has been subdued compared to the boom of 2013-15, however, the last three months have seen a strong uptick in deals. A total of 52 IPOs debuted in 2Q 2017 compared to just 24 in the 1Q. This included a consistent number in each month including 17 IPOs in June. The average return of 3.28% above the offering price at first trade is evidence that not all deals coming to market are worth investing in.

This is where IPO Boutique can contribute to your team.

Indicate and size up for the best deals and avoid the rest (as best you can). How do you know which deals will perform better in day one or week one? You can read all the articles and analyze all the financial data in the world but demand of the IPO at first trade is complex.

How many orders are in the book? Where are the strong anchor orders indicating for the deal? How does institutional money view the particular IPO? Will retail get a heavy allocation? How many times oversubscribed? What is the past performance of underwriters on the book? How is the sector performing in recent quarters?

This information is just the tip of the iceberg about why a knowledgable ratings service with strong contacts and 45 years in the IPO business pays for itself.

Inquire about a subscription by emailing JZell@IPOBoutique.Com or calling 704-665-7558.