Last week was a holiday shortened week which saw good news and bad news. The good news was that 100% of the IPO's on the calendar were able to issue. The bad news is that there was only one scheduled. Backed by a well-regarded management team, checkpoint inhibitor developer Corvus Pharmaceuticals (CRVS ) raised $71 million. Insiders who recently invested privately, purchased $34 million on the offering (48% of shares). Despite the insiders' support, Corvus fell 5% on its debut. Special note: Every IPO in 2016 has been supported by insider buying.
The first quarter, marked by the least amount of IPO activity since the 1Q 2009, comes to a conclusion this week. Quarter to date, there have been 8 IPOs, all health care, that have raised $667 million.
Upcoming IPO's:
MGM Growth Properties (MGP ) an MGM Resorts-backed REIT with an initial portfolio of 10 gaming properties, filed on Tuesday with the SEC to raise up to $100 million in an initial public offering. However, the deal size is likely just a place holder while they continue preparing. Look for this deal size to get closer, if not over $1 billion.
SecureWorks (SCWX ), a managed security services provider being spun out of Dell, updated their financials for fiscal 2016. NOTE: while it reported dramatically widening losses, revenue growth accelerated to 29.5% from 27.4% and billings growth remained strong at 26%, The Atlanta, GA-based company, which was founded in 1999 and previously booked $317 million in sales for the 12 months ended October 30, 2015
Lastly, Securities exchange operator Bats Global Markets (BATS ), which updated financials earlier this month, is reportedly seeking to complete its IPO in April. The Lenexa, KS-based company, which was founded in 2005 and booked $1.8 billion in sales for the 12 months ended September 30, 2015