This week we have four IPOs on the books and, as of now they are looking to raise just about $900 million between the four of them. Of the group we have three that are reporting that they are profitable company's. There are two companies that can claim that they grew more than 30% in the most recent quarter. Also we have a biotech with heavy insider buying (which has been the pattern all year). Side note: The biotech sector has been the most active for 2016 with about 40% of the IPO's.
As far as the markets, well they continue to show no signs of weakness and currently are near all-time highs. This has no doubt helped IPO's in 2016, as we can report that they have outperformed by 19% on average. The VIX Volatility Index (measures level of fear in the market) is at its lowest point since August 2015. The only thing that is currently holding back the IPO market from a full run is the valuations that existing companies are coming to market with. IPO investors continue to hold back citing over priced offerings.
First up we have Patheon (NYSE: PTHN) which is one of the world's largest contract drug manufacturers. According to their filings they are set to raise $625 million which would be one of the year's largest IPOs. Patheon develops drug formulations, creates the active ingredients and then provides large-scale manufacturing and packaging. Analysts to report that Patheon struggled to generate organic growth more recently, and will remain highly levered after the IPO thanks to insider distributions. the company will look to issue 30 million shares at a range of $19-22.
Next we have Impinj (NASDAQ: PI). Issuing 4.6 million shares at a range of $12-14 , this dominant provider of RFID location tags (often used to prevent shoplifting) is set to raise $60 million. Analysts note that the company has generated a profit for three consecutive years, and grew sales by 34% to $22 million in the first quarter.
TPI Composites (NASDAQ: TPIC) is up next looking to raise $116 million by offering 7.25 million shares at a range of $15-17. If successful they will be the only public public wind blade manufacturer in the US. According to their filings, TPI mainly supplies four large wind turbine companies (93% of revenue), and revenue soared 83% to $586 million in 2015 on strong tailwinds, including an industry shift to outsourcing and clean-energy subsidies. IPO may hold back on this one though as government benefits are currently up in the air, and set to begin expiring in the US in 2017.
Lastly we have Audentes Therapeutics (NASDAQ: BOLD). This is a gene therapy biotech which plans to raise $75 million by offering 5 million shares at a range of $14-16. The company is preparing Phase 1 trials for rare diseases. Side note: The year's other developer of gene therapies, AveXis (NASDAQ: AVXS), is the best-performing biotech of 2016, up 76%. As we have seen all year, insiders are supporting up to 40% of the IPO.