Zosano Pharma is the only US IPO planned for this week, as the
IPO market's annual August hiatus carries on. The early-stage
biotech has been on the calendar to price in each of the past four
weeks, but continues to delay its offering. Of the past 10 biotech
IPOs, only Avalanche Biotechnology (
) and Innocoll (
) trade over 2% above the IPO price, even as the group was
discounted 15% below the midpoint on average. With 112 IPOs in
the pipeline looking to raise $45 billion (including Alibaba's
soon-expected $20 billion deal) and the Renaissance IPO
) at $23, September IPO activity is poised to pick up where July
IPO is expected to price this week
), a biotech developing a transdermal delivery system to treat
osteoporosis, plans to raise $70 million by offering 6.4 million
shares at a price range of $10 to $12. At the midpoint of the
proposed range, Zosano would command a market value of $139
million. Zosano Pharma, which was founded in 2007, booked $3
million in collaboration revenue over the last 12 months. The
Fremont, CA-based company plans to list on the NASDAQ under the
symbol ZSAN. Wedbush PacGrow, Ladenburg Thalmann and Roth Capital
are the joint bookrunners on the deal.
Renaissance Capital issues
for institutional investors ahead of upcoming IPOs.
IPO market snapshot
So far this year, 189 IPOs have raised $40.6 billion and produced
an average first day return of 13%. The Renaissance IPO ETF, a
float cap-weighted basket of newly public companies and indicator
of post-IPO performance, has gained 5.3% compared with 7.6% for the
S&P 500. Over the last 30 days, the IPO ETF has risen 2.2%
compared with 0% for the S&P 500, suggesting that the IPO
market remains receptive to new issuance. The active IPO pipeline
includes 112 companies looking to raise a total of $45.4 billion.
One US IPO planned for the week of Aug 25
originally appeared on IPO investment manager Renaissance Capital's
web site renaissancecapital.com.
The information and opinions expressed herein were prepared by
Renaissance Capital's research analysts and do not constitute an
offer to buy or sell any security. Renaissance Capital, the
Renaissance IPO ETF (symbol: IPO)
Global IPO Fund (symbol: IPOSX)
, may have investments in securities of companies mentioned.