IPO News This Week: AXA Equitable Seeks $3.5 Billion

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Last week’s initial public offering (IPO) calendar included eight firms looking to enter the public markets. All eight were successful and raised a total of $733 million in new capital. The coming week includes five firms seeking about $4 billion in new capital from the public markets. Among the scheduled IPOs is a $3.5 billion deal, the largest U.S. IPO since Alibaba in 2014.

Inspire Medical Systems Inc. (NASDAQ: INSP) raised $108 million by selling 6.8 million shares at the top of the expected range of $14 to $16. Shares got a first-day pop of 56% and closed the week up 53%.

Carbon Black Inc. (NASDAQ: CBLK) raised $152 million by selling 8 million shares at $19, the top of the expected range. Shares got a first-day pop of 26% on the Friday IPO.

BayCom Corp. (NASDAQ: BCML) raised $63 million by in an upsized offering of 2.9 million shares priced at $22, the midpoint of the expected range. Shares popped 5% on the Friday IPO.

Spirit of Texas Bancshares (NASDAQ: STXB) raised $42 million in an upsized offer of 2 million shares priced at $21, the midpoint of the expected range. Shares popped 4% on the Friday IPO.

Construction Partners Inc. (NASDAQ: ROAD) raised $135 million by selling 1.3 million shares at $12, well below the expected range of $15 to $17. Shares added just 1% on the Friday IPO.

Unity Biotechnology Inc. (NASDAQ: UBX) raised $85 million by selling 5 million shares at $17, the midpoint of the expected range. Shares dipped 2% on the first day of trading and closed the week down 1%.

PermRock Royalty Trust (NYSE: PRT) raised $106 million by selling 6.3 million units at $17, below the expected range of $19 to $21. Shares closed the week down 9%.

ASLAN Pharmaceuticals Ltd. (NASDAQ: ASLN) raised $42 million in a downsized offering of 6 million shares priced at $7.03. Shares closed the week down 20%.

Through the week ending May 4, IPO ETF manager Renaissance Capital reported that 64 IPOs have priced in the U.S. so far this year, up about 28% year over year. Total proceeds raised through last week equaled $19.3 billion, also up about 28% year over year.

For 2017, Renaissance Capital reported a total of 160 IPOs, up 52% year over year from 105 in 2016. Total 2017 proceeds amounted to $35.5 billion compared with a 2016 total of $18.8 billion. Renaissance Capital does not include “best efforts” or blank-check companies in its totals, nor does it include IPOs that raise less than $10 million.

Here are the six companies looking to raise new capital in the coming week.

Evelo Biosciences Inc. is an early stage biotechnology firm developing microbial gut therapies for inflammatory diseases. The plans to offer 5.3 million shares in an expected price range of $15 to $17 to raise $85 million at a market cap of $510 million. Underwriters for the offering are Morgan Stanley, Cowen & Company, BMO Capital Markets, and JMP Securities. Shares are expected to price Tuesday and begin trading Wednesday on the Nasdaq under the ticker symbol EVLO.

Origin Bancorp Inc. is a Louisiana-based bank holding company. The bank plans to offer 3.6 million shares in an expected price range of $33 to $35 to raise about $124 million at a market cap of $749 million. Underwriters are Stephens Inc., Raymond James, Keefe Bruyette Woods, and Sandler O’Neill. Shares are set to price Tuesday and begin trading Wednesday on the Nasdaq under the ticker symbol OBNK.

AXA Equitable Holdings Inc. is the U.S.-based operation of French life insurer and asset management firm AXA. The firm plans to offer 137.3 million shares in an expected price range of $24 to $27 to raise $3.5 billion at a market cap of $14.31 billion. Underwriters include Morgan Stanley, J.P. Morgan, Barclays, and Citigroup, among a host of others. Shares are expected to price Wednesday and begin trading Thursday on the New York Stock Exchange under the ticker symbol EQH.

Abpro Corp. is a preclinical biotechnology firm developing novel antibodies to treat various cancers. The plans to offer 4 million shares in an expected price range of $14 to $16 to raise $60 million at a market cap of $281 million. Underwriters are UBS Investment Bank, Wells Fargo Securities, Nomura Securities, and Oppenheimer & Co. Shares are scheduled to price Thursday and begin trading Friday on the Nasdaq under the ticker symbol ABP.

HUYA Inc. is a China-based video streaming platform for video games and e-sports being spun out of Chinese firm YY Inc. The firm plans to offer 15 million American Depositary Shares (ADS) in an expected price range of $10 to $12 per ADS to raise $165 million at a market cap of $3.97 billion. One ADS is equal to one ordinary share. Underwriters are Credit Suisse, Goldman Sachs (Asia), UBS Investment Bank, and Needham & Co. Shares are scheduled to price Thursday and begin trading Friday on the New York Stock Exchange under the ticker symbol HUYA.

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