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By Che Odom
Feb. 11 — Just four companies have gone public on U.S. exchanges as of Feb. 11, one of the slowest starts for initial public offerings in several years, according to Bloomberg Law: Corporate Transactions data.
Two companies went public Feb. 11 — Proteostasis Therapeutics Inc. of Cambridge, Mass., and AveXis Inc., based in Bannockburn, Ill.
New rulemaking out of the Securities and Exchange Commission, alternative methods of financing and market volatility may be behind the low numbers.
While more than 30 companies have announced their intent to go public since Jan. 1, four biotech companies are the only issuers to complete the process and publicly trade in 2016.
BeiGene Ltd., based in China, and Editas Medicine Inc. of Cambridge, Mass., began trading Feb. 2.
No IPOs priced in January. That's the slowest month for IPOs since December 2008, according to a review of the data.
In contrast, in January 2015, 19 issuers began trading stock for the first time on U.S. exchanges.
James Moloney, a partner in the Irvine, Calif., office of Gibson, Dunn & Crutcher LLP, whose practice focuses on corporate governance and transactional and securities law, told Bloomberg BNA in an interview Feb. 11 that he is not that surprised or concerned about the slow start.
Some companies that were successful in completing their IPOs last year weren't able to maintain their stock prices above the initial offering price for an extended period of time, Moloney said.
While sellers are looking for strong pricing, “price savvy investors” may be looking for “bargains” or for “issuers who can solidly maintain trading pricings that are a healthy margin above the IPO price for more than a year,” he said.
Given that the market may be experiencing a slight disconnect in pricing, some issuers are pursuing interim capital-raising in the private markets, Moloney said.
“I would also note that historically, January and February are relatively slow months for IPOs, with most typically emerging during the summer and early months of fall,” he said.
New rules at the SEC may be dampening the thirst for IPOs, Moloney continued. These include the lifting of the ban on general solicitation and advertising for certain private securities offerings pursuant to the Jumpstart Our Business Startups Act and increasing the threshold for unregistered public offerings .
In addition, the ability of emerging growth companies to submit their draft registration statements on a confidential basis may be influencing IPO numbers, Moloney said.
“All of that may be masking, to a certain degree, the capital-raising activity that is already in progress,” he said.
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|Issuer||Date Announced||Offer Size||Lead Bookrunner||Legal Adviser||Offer Stage||Offer Price|
|Sensus Healthcare Inc.||02/10/2016||$23.00M||Joseph Gunnar & Co.||Gunster Yoakley & Stewart PA||Pending||—|
|US Foods Holding Corp.||02/09/2016||$100.00M||—||Jenner & Block LLC||Pending||—|
|GRCR Partners Inc.||02/08/2016||$0.25M||—||Daniel H Luciano Esq||Pending||—|
|Leng Universal Inc.||02/02/2016||$10.00M||—||Adam S Tracy Esq||Pending||—|
|Moleculin Biotech Inc.||02/01/2016||$12.00M||Bonwick Capital Partners LLC||Schiff Hardin LLP||Pending||—|
|Plush Corp.||01/29/2016||$0.03M||—||Mont E. Tanner Esq||Pending||—|
|XG Sciences Inc.||01/27/2016||$54.28M||—||Foster Swift Collins & Smith PC||Pending||—|
|Tactile Systems Technology Inc.||01/25/2016||$86.25M||Piper Jaffray & Co.||Faegre Baker Daniels LLP||Pending||—|
|Titan Computer Services Inc.||01/20/2016||$5.78M||—||Feder Kaszovitz Isaacson Weber Skala & Bass||Pending||—|
|KLR Energy Acquisition Corp.||01/19/2016||$130.00M||—||Ellenoff Grossman Schole & Cyruli LLP||Pending||—|
|Global Water Resources Inc.||01/19/2016||$5.92M||—||Snell & Wilmer LLP||Pending||—|
|Axeture Corp.||01/19/2016||$0.10M||—||Law Office of Andrew Coldicutt||Pending||—|
|PC Mobile Media Corp.||01/19/2016||$0.04M||—||Law Offices of Joseph L Pittera||Pending||—|
|Oncobiologics Inc.||01/15/2016||$115.00M||Jefferies||Cooley LLP||Pending||—|
|Avexis Inc.||01/15/2016||$89.25M||Goldman Sachs||Cooley LLP||Pending||$20|
|Senseonics Holdings Inc.||01/15/2016||$51.75M||Leerink Partners LLC||Cooley LLP||Pending||—|
|XTI Aircraft Co.||01/14/2016||—||—||—||Pending||—|
|Bosy Holdings Corp.||01/13/2016||—||—||Benjamin L Bunker Esq||Pending||—|
|Clearside Biomedical Inc.||01/08/2016||$57.50M||RBC Capital Markets||Cooley LLP||Pending||—|
|OTG EXP Inc.||01/07/2016||$585.00M||Morgan Stanley||Kirkland & Ellis||Postponed||—|
|Visterra Inc.||01/05/2016||$69.00M||Leerink Partners LLC||Wilmer Cutler Pickering Hale & Dorr LLP||Pending||—|
|Spring Bank Pharmaceuticals Inc.||01/05/2016||$57.50M||William Blair & Co. LLC||Wilmer Cutler Pickering Hale & Dorr LLP||Pending||—|
|Nova Smart Solutions Inc.||01/05/2016||$6.17M||—||Matheau JW Stout Esq.||Pending||—|
|Tabula Rasa HealthCare Inc.||01/04/2016||$115.00M||Wells Fargo||Morgan Lewis & Bockius||Pending||—|
|Corvus Pharmaceuticals Inc.||01/04/2016||$115.00M||Credit Suisse||Latham & Watkins LLP||Pending||—|
|Editas Medicine Inc.||01/04/2016||$108.56M||Morgan Stanley||Wilmer Cutler Pickering Hale & Dorr LLP||Trading||$16|
|Syndax Pharmaceuticals Inc.||01/04/2016||$86.25M||Morgan Stanley||Hogan Lovells US LLP||Pending||—|
|Audentes Therapeutics Inc.||01/04/2016||$86.25M||Bank of America Merrill Lynch||Fenwick & West LLP||Pending||—|
|Reata Pharmaceuticals Inc.||01/04/2016||$80.00M||Citi||Vinson & Elkins LLP||Pending||—|
|Bavarian Nordic A/S||01/04/2016||—||Cowen & Co.||Cooley LLP, Kromann Reumert||Pending||—|
|Source: Bloomberg Law: Corporate Transactions|
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