The first quarter of 2016 ends with the worst news for IPO markets. This was the slowest quarter for new issues since 2009. There were no companies that went public in the final week of a March and many IPO analysts are wondering where the signs of life will come from. There are many large deals potentially up coming and with the S&P 500 recovering from its large decline that started the year and volatility returning to lower levels, it would seem that conditions are becoming more favorable for the IPO markets.Micro-cap systems maker Sensus Healthcare (SRTS ) postponed a $20 million IPO at a proposed $97 million market cap. However, a little good news did emerge with a potential billion-dollar IPO. Last week, AIG spinoff United Guaranty (UGCO ) filed with the SEC to raise up to $100 million in an initial public offering. However, the deal size is widely regarded by analysts as a placeholder for an IPO that is estimated to raise over $1 billion.
US Foods (USFD ) and McGraw-Hill Education (MHED ) both updated their financials last week. Analysts remain motivated by these two as their estimated deal sizes of $1 billion, and $500 million could attract more attention back to the IPO markets.
Pricing this week:
Aeglea BioTherapeutics (AGLE ), which is developing enzymes for rare genetic metabolic diseases and tumors, expects to price this week. The Austin, TX-based company plans to raise $60 million by offering 3.5 million shares at a price range of $16 to $18. At the midpoint of the proposed range, Aeglea BioTherapeutics would have a market value of $203 million. Insiders are widely expected to support this new issue which has become a theme of sort lately for Health Care related IPO's.
