Secondaries Announced 7.26.2017

IPO BOUTIQUE CLIENTS and IPO BOUTIQUE SECONDARY ALERTS CLIENTS received ALL this information to their inbox on a REAL TIME basis.

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Our Buy, Neutral or Avoid ratings of the Secondaries below are intended as a recommendation for those who buy Secondaries on a regular basis. For example, this is not to be interpreted as a Buy recommendation in the traditional sense of adding to your stock portfolio; this is a short term (usually one day or opening trade) time period.
Company: Eastside Distilling, Inc.
Symbol: ESDI
Price: Last Trade $6.20
Trade Date: 8/4
Shares: 1.2 million
Underwriter(s) : Roth Capital, Aegis
Rating = Subscription Needed

Note: Each share of their common stock is being sold together with a warrant to purchase one-half of a share of our common stock.

Company: Sachem Capital
Symbol: SACH
Price: Last Trade $4.10
Trade Date: 7/28
Shares: 2.9 million ($12m cash raise)
Underwriter(s) : Jospeh Gunnar, Axiom Capital
Rating = Subscription Needed

Company: Triumph Bancorp, Inc.
Symbol: TBK
Price: Last trade $28.80
Trade Date: 7/27
Re-offer Range: Subscription Needed
Shares: 1.7 million
Underwriter(s) : Stephens, Inc., Keefe, Bruyette & Woods, Sandler O’Neill & Partners, Wells Fargo Securities
Rating = Subscription Needed

Company: CIT Group, Inc.
Symbol: CIT
Price: Last trade $48.12
Trade Date: 7/27
Re-offer Range: Subscription Needed
Shares: 2.1 million
Underwriter(s) : Morgan Stanley
Rating = Subscription Needed

Company: TripAdvisor-BLOCK
Symbol: TRIP
Price: Last trade $39.06
Trade Date: 7/27
Re-offer Range: Subscription Needed
Shares: 450,000
Underwriter(s) : Morgan Stanley
Rating = Subscription Needed

Company: Tetraphase Pharmaceuticals, Inc.
Symbol: TTPH
Price: Last Trade $7.88
Trade Date: 7/28
Shares: 7.61 ($60 million cash raise)
Underwriter(s) : Piper Jaffray, BMO Capital Markets, Stifel | SunTrust Robinson Humphrey, H.C. Wainwright & Co.
Rating = Subscription Needed

Company: Neuralstem, Inc.
Symbol: CUR
Price: Last Trade $2.47
Trade Date: 7/27
Re-offer Range: Subscription Needed
Shares: 2.4 million
Underwriter(s) : Canaccord Genuity
Rating = Subscription Needed

 

Redfin Corporation IPO Preview

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Company:      Redfin Corporation
Symbol:           RDFN
Description:   They are a technology-powered residential real estate brokerage. They represent people buying and selling homes in over 80 markets throughout the United States.
Shares:            9.23 million
Price Range:   $12.00-$14.00
Trade Date:     7/28
Underwriter(s): Goldman Sachs & Co., Allen & Company
Co-Manager: BofA Merrill Lynch, RBC Capital Markets, Oppenheimer & Co., Stifel

Link to S-1/A Prospectus

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Investor Access: This deal can be accessed via the two main underwriters and the four co-managers.

Financials: For the three months ended March 31, 2016 and 2017, they generated revenue of $41.6 million and $59.9 million, respectively, representing year-over-year growth of 44%. For the three months ended March 31, 2016 and 2017, they generated net losses of $24.3 million and $28.1 million, respectively. For the years ended December 31, 2014, 2015, and 2016, they generated revenue of $125.4 million, $187.3 million, and $267.2 million, respectively, representing annual growth of 37%, 49%, and 43%, respectively. They generated net losses of $24.7 million, $30.2 million, and $22.5 million for the years ended December 31, 2014, 2015, and 2016, respectively.

RedfinFinancials

Business:

They meet customers through their listings-search website and mobile application, reducing the marketing costs that can keep fees high. They use machine learning to recommend better listings than any customer could find on her own. And they pay Redfin lead agents based in part on customer satisfaction, not just commission, so they’re on the customer’s side. Their homebuyers saved on average approximately $3,500 per transaction in 2016. And they charge most home sellers a commission of 1% to 1.5%, compared to the 2.5% to 3% typically charged by traditional brokerages. Their homebuyers saved on average approximately $3,500 per transaction in 2016. And they charge most home sellers a commission of 1% to 1.5%, compared to the 2.5% to 3% typically charged by traditional brokerages. Because they’re one of the only major brokerages building virtually all of their own brokerage software, their gains in efficiency, speed, and quality are proprietary, and they believe those software-driven gains are likely to grow over time. They believe listing more homes and drawing more homebuyers to their website and mobile application will let them pair homebuyers and home sellers directly online over time, further improving their service and lowering their costs.

Market Opportunity:

Over one-third of middle-class consumer spending is on the home. The National Association of REALTORS®, or NAR, estimated that the aggregate value of existing U.S. home sales was approximately $1.5 trillion in 2016 from approximately 5.5 million total transactions. They estimate consumers paid more than $75 billion in commissions in 2016 for these transactions.

The residential brokerage industry is highly fragmented. There are an estimated 2,000,000 active licensed agents and over 86,000 real estate brokerages in the United States, many operating through franchises or as small local brokerages. Their goal is to build the first large-scale brokerage that stands apart in consumers’ minds for delivering a unique and consistent customer experience, where the value is in their brokerage and its technologies, not just a personal relationship with one agent.

Book-Building Status: The way the book comes together during the week of the roadshow is the most critical indicator to first-day and first-week performance. IPO Boutique uses its 45 years of experience and sources all over the street to gather daily subscription levels, specific price guidance and what type of investors are currently in the book or are anchoring orders in the book. In addition, recent underwriter performance on sector specific deals is a strong factor that IPO Boutique takes into account when determining if our clients should indicate for any offering.

IPO Boutique subscription clients receive daily updates on this critical information.

Conclusion: IPO Boutique provides ratings, daily commentary and a forecast for how this IPO will open vs. its offering price. We have kept a track record with our performance for last 12 years at our website. Additionally, we have our latest performance results with commentary from the month of May by clicking here.

Indicate with confidence, SUBSCRIBE today.

Secondaries Announced 7.25.17

IPO BOUTIQUE CLIENTS and IPO BOUTIQUE SECONDARY ALERTS CLIENTS received ALL this information to their inbox on a REAL TIME basis.

If having real-time alerts for secondary offerings would be an advantage to you, inquire about a subscription today!

Our Buy, Neutral or Avoid ratings of the Secondaries below are intended as a recommendation for those who buy Secondaries on a regular basis. For example, this is not to be interpreted as a Buy recommendation in the traditional sense of adding to your stock portfolio; this is a short term (usually one day or opening trade) time period.

Company: Reata Pharmaceuticals
Symbol: RETA
Price: Last Trade $32.52
Trade Date: 7/27
Shares: 2.25 million
Underwriter(s) : Jefferies LLC, Leerink Partners, LLC Stifel, Nicolaus & Company, Incorporated
Co-Manager(s): Robert W. Baird & Co., Incorporated, Ladenburg Thalmann & Co. Inc.
Rating = Subscription Needed

Company: Orion Engineered Carbons S.A.
Symbol: OEC
Price: Last Trade $23.65
Trade Date: 7/26
Re-offer Range: Subscription Needed
Shares: 10 milllion
Underwriter(s) : Barclays Capital Inc., Morgan Stanley & Co. LLC
Rating = Subscription Needed

Company: Moelis & Co.
Symbol: MC
Price: Last Trade $43.80
Trade Date: 7/26
Re-offer Range: Subscription Needed
Shares: 6 million
Underwriter(s) : Goldman Sachs & Co., J.P. Morgan
Rating = Subscription Needed

Sienna Biopharmaceuticals, Inc. IPO Preview

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Company:       Sienna Biopharmaceuticals, Inc.
Symbol:           SNNA
Description:    They are a clinical-stage biopharmaceutical company focused on bringing innovations in biotechnology to the discovery, development and commercialization of first-in-class, targeted, topical products in medical dermatology and aesthetics.
Shares:            4.33 million
Price Range:   $14.00-$16.00
Trade Date:     7/27
Underwriter(s): J.P. Morgan, Cowen, BMO Capital Markets

Link to S-1/A Prospectus

Investor Access: This deal can be accessed via the three main underwriters.

Business: They are a clinical-stage biopharmaceutical company and, as such, have no revenues from any of their product candidates. Their lead candidate from this platform, SNA-120, is a first-in-class inhibitor of TrkA in Phase 2b clinical development for the treatment of pruritus, or itch, associated with psoriasis, as well as for psoriasis itself. Their second Topical by Design product candidate, SNA-125, is a dual JAK3/TrkA inhibitor being developed for the treatment of atopic dermatitis, psoriasis and pruritus. They are completing nonclinical studies with SNA-125 to enable clinical trials in the first half of 2018. Additionally, they have advanced SNA-001, a silver particle treatment derived from their Topical Photoparticle Therapy™ platform, into pivotal clinical trials for both acne vulgaris and the reduction of unwanted light-pigmented hair. There is a significant opportunity to address the historical lack of innovation in topical products for dermatology patients.

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Market Opportunity: Prescription medical dermatology products represented an approximately $19 billion global market in 2016, which is projected to grow to over $25 billion by 2020. Prescription drugs indicated for the treatment of psoriasis, atopic dermatitis and acne accounted for approximately 50% of this market, and they believe that the treatment of pruritus, which affects the vast majority of psoriasis and atopic dermatitis patients and a large percentage of patients with other chronic conditions, presents a substantial additional market opportunity. Demand for treatments of dermatologic conditions is driven, in part, by the highly visible nature of skin disease and distressing symptoms the patient experiences, such as itch, burning, or pain, all of which negatively impact quality of life. As new products are developed to address these unmet needs, they believe patients, physicians and payors will prefer the use of effective topical treatments that are suitable for chronic use in the broader patient population. They design and develop their targeted topical products with these criteria in mind, and believe they will play an important role in the treatment of various underserved skin conditions in the future.

Comp / Sector Performance: 

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Book-Building Status: The way the book comes together during the week of the roadshow is the most critical indicator to first-day and first-week performance. IPO Boutique uses its 45 years of experience and sources all over the street to gather daily subscription levels, specific price guidance and what type of investors are currently in the book or are anchoring orders in the book. In addition, recent underwriter performance on sector specific deals is a strong factor that IPO Boutique takes into account when determining if our clients should indicate for any offering.

IPO Boutique subscription clients receive daily updates on this critical information.

Conclusion: IPO Boutique provides ratings, daily commentary and a forecast for how this IPO will open vs. its offering price. We have kept a track record with our performance for last 12 years at our website. Additionally, we have our latest performance results with commentary from the month of May by clicking here.

Indicate with confidence, SUBSCRIBE today.

RBB Bancorp IPO Preview

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Company: RBB Bancorp
Symbol: RBB
Description:RBB Bancorp adopted a strategic plan focused on providing commercial banking services to first generation immigrants, initially concentrating on Chinese immigrants, and now including Koreans and other Asian ethnicities.
Shares: 3 million
Price Range: $22.00-$24.00
Trade Date: 7/26
Underwriter(s): Sandler O’Neill & Partners, Keefe Bruyette & Woods, Stephens Inc.
Co-Manager: FIG Partners, LLC

Link to S-1/A Prospectus

Investor Access: This deal can be accessed via the three main underwriters and the co-manager.

Business: The bank was founded to capitalize on the general dissatisfaction that many customers had with the nature and level of services that were being provided by existing Asian-American and Chinese-American banks, with first generation Chinese immigrants not being well-served by existing banks. Their directors and their families, as well as various business leaders in the local community, initially capitalized the Bank at over $70 million. These investors have also assisted their management team in establishing and growing strong connections with businesses located in China and Asia, as well as at high levels of government in China and Taiwan. They believe that these connections have enhanced the Bank’s reputation and name recognition well beyond what would be typical for a bank of their size. Although the Bank serves all ethnicities, their board and management team are comprised of mostly Chinese-Americans, and as a result, their marketing focus was initially on first generation Chinese-Americans who prefer to conduct business in their native language(s). Their size and infrastructure allow them to serve customers that require higher lending limits than normally associated with other smaller, local banking institutions that serve the Chinese-American communities in which they operate.

Financials: Their net interest income was $20.4 million, $28.7 million, $33.6 million, $35.6 million, and $56.5 million and their net income was $4.5 million, $7.0 million, $10.4 million, $13.0 million, and $19.1 million in 2012, 2013, 2014, 2015 and 2016, respectively. In the first quarter of 2017, their net interest income increased 12.3% to $13.5 million, while their net income increased 93.4%, compared to the same period in 2016, primarily due to the growth in earning assets as a result of the TomatoBank merger, increased gain on sales of SBA loans and reduced legal and professional expenses and other expenses.

Dividend: Their estimated quarterly dividend of $0.08 ($0.32 annually) represents an approximately 1.4% yield, based on the midpoint of the offering range.

Similar Bank Performance: In addition to these Chinese-American banks, they also compete with other banks in the region, particularly with Korean-American banks in their SFR and SBA lending areas. Although they were founded by and market primarily to Chinese Americans, they are broadening their marketing efforts to include all categories of Asian Americans. In certain geographic markets where they currently operate, there is overlap between Chinese-American, Korean-American and other Asian-American banks for loan and deposit business. They aim to grow both organically and potentially through acquisitions in these markets.

Sector Performance YTD:

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Book-Building Status: The way the book comes together during the week of the roadshow is the most critical indicator to first-day and first-week performance. IPO Boutique uses its 45 years of experience and sources all over the street to gather daily subscription levels, specific price guidance and what type of investors are currently in the book or are anchoring orders in the book. In addition, recent underwriter performance on sector specific deals is a strong factor that IPO Boutique takes into account when determining if our clients should indicate for any offering.

IPO Boutique subscription clients receive daily updates on this critical information.

Conclusion: IPO Boutique provides ratings, daily commentary and a forecast for how this IPO will open vs. its offering price. We have kept a track record with our performance for last 12 years at our website. Additionally, we have our latest performance results with commentary from the month of May by clicking here.

Indicate with confidence, SUBSCRIBE today.

Weekly Secondary Performance Report (7.21.17)

You can Subscribe to IPO Boutique’s Secondary Only Service by clicking here:


This past week 18 secondary offerings came to market and IPO Boutique placed BUY ratings on 12 of them. In all, $7.36bn was raised by companies in the secondary market this week.

The average gain of IPO Boutique BUY rated offerings this week at first trade was 2.9%

The average gain of IPO Boutique Neutral rated offerings this week at first trade was 0.9%.

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The last 20 IPO Boutique ‘BUY’ rated secondary offerings have produced an average gain of 2.1% at first trade and an average gain of 5.24% at the high of their first-day of trading.

This week saw the largest follow-on offering of the 2017 calendar year as Crown Castle International priced 36.5mm shares at $96.00 for a common stock tranche raise of $3.5bn. This was in addition to $1.3bn worth of converts for a grand total of $4.8bn raised. The deal, in which IPO Boutique rated as a BUY, opened just $0.39 above the offering price but traded as high as $99.75 for a gain of 3.9% at its high of the day.

Five of our 12 BUY rated offerings opened 3% or higher above their offering prices this week. The best of the group were Apollo Endosurgery (APEN), CymaBay Therapeutics (CBAY) and USA Technologies (USAT) which opened 6.9%, 7.7% and 10.0% above their offering prices, respectively.

Weekly Secondary Performance Report (7.21.17) 

There are currently two secondary offerings on the schedule for next week, Sachem Capital (SACH) and REVEN Housing Reit (RVEN)

IPO Weekly Recap: PetIQ outperforms, three strong deals for the week

This past week four deals came to market with three of them gaining more than $1.50 above their offering prices at first trade.

IPOSummary.07.21.17

PetIQ, Inc. (Nasdaq: PETQ) turned out to be the strongest deal of the week after upsizing its offering and pricing at the high-end of the range, $16.00. PETQ opened with a $5.00 premium at first trade for a 31.3% gain. $PETQ traded and closed near its highs, $23.32, for a gain of 46% for its opening session.

Kala Pharmaceuticals (Nasdaq: KALA) priced at the midpoint of its range, $15.00, and opened 13.2% higher with a first trade of $16.70. ‘KALA’ traded very well in its first few days as a public company as the biotech hit a weekly high of $19.44 or 29.6% above the offering price.

Calyxt Inc. (Nasdaq: CLXT) needed to severely cut its price, ultimately pricing $7.00 below the $15-$18 range when filed. The deal, which was slightly upsized, opened $1.50 above the $8.00 pricing and traded as high as $11.88 in its first week.

The other deal of the week, TPG RE Finance Trust (NYSE: TRTX), came and went with little fanfare as TRTX opened $0.40 below the $20.00 low-end pricing. $TRTX never traded above the offering price in its opening week.

Looking ahead to this week… there are four IPOs on the schedule. Click here to look at the schedule for the upcoming week.


 

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IPO Lookahead – Four IPOs on the schedule for last week of July

Here’s a look at the up-to-date active IPO pipeline. 

This past week was the most active of July. The up-coming week we will be more subdued as only three IPOs are on the schedule.

IPO Schedule – Week of 7/24

Wednesday, July 26

RBB Bancorp (Nasdaq: RBB) adopted a strategic plan focused on providing commercial banking services to first generation immigrants, initially concentrating on Chinese immigrants, and now including Koreans and other Asian ethnicities.

Thursday, July 27

Sienna Biopharmaceuticals (Nasdaq: SNNA) is a clinical-stage biopharmaceutical company focused on bringing innovations in biotechnology to the discovery, development and commercialization of first-in-class, targeted, topical products in medical dermatology and aesthetics.

Friday, July 28

Redfin Corporation (Nasdaq: RDFN) is a technology-powered residential real estate brokerage.

Mota Group, Inc. (Nasdaq: MOTA) designs, manufactures and markets consumer products…including recreational and commercial drones, smart wearables and innovative mobile accessories for smartphone and camera users. The warrants have an exercise price of $12.49 per share or 125% of the common stock public offering price and expire five years from the date of issuance.

Secondary Schedule – Week of 7/24

Wednesday, July 26 

Sachem Capital (Nasdaq: SACH)

Friday, July 28

Reven Housing REIT (Nasdaq: REIT)

IPO Pipeline Update: New Filings & Terms Added (Week ending 7.21.17)

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IPO Boutique keeps apprised of the active pipeline. Currently there are 54 active IPOs in the pipeline as of July 21, 2017. No SPACs or Unit Offerings are included.

NEW FILINGS

Company: BJ Services, Inc.
Symbol: BJS
Description: They are the largest North American-focused, pure-play pressure pumping services provider.
Trade Date: TBD
Underwriter(s): Goldman Sachs & Co., Morgan Stanley, Credit Suisse
Filed: 7-14-17
Listed Cash Raise: $100 million

Company: Genprex, Inc.
Symbol: GNPX
Description: Genprex is a clinical stage gene therapy company developing a new approach to treating cancer, based upon their novel proprietary technology platform, including their initial product candidate, Oncoprex immunogene therapy, or Oncoprex.
Trade Date: TBD
Underwriter(s): Network 1 Financial Securities
Filed: 7-21-17
Listed Cash Raise: $22.5 million

Company: Nexpoint Multifamily Capital Trust
Symbol: NREF
Description: NREF will originate and structure preferred equity, alternative structured financing investments, mezzanine debt, bridge financing and first mortgage loans in properties benefiting from significant tenant diversification and short-term lease structures, including multifamily, storage and select-service and extended-stay hospitality properties.
Trade Date: TBD
Underwriter(s): TBD
Filed: 7-21-17
Listed Cash Raise: $10 million

TERMS ADDED

Company: Redfin Corporation
Symbol: RDFN
Description: Redfin is a technology-powered residential real estate brokerage.
Shares: 9.2 million
Price Range: $12.00-$14.00
Trade Date: 7/28
Underwriter(s): Goldman Sachs & Co., Allen & Company
Co-Manager: BofA Merrill Lynch, RBC Capital Markets, Oppenheimer & Co., Stifel
Filed: 7-17-17

Company: Sienna Biopharmaceuticals, Inc
Symbol: SNNA
Description: They are a clinical-stage biopharmaceutical company focused on bringing innovations in biotechnology to the discovery, development and commercialization of first-in-class, targeted, topical products in medical dermatology and aesthetics
Shares: 4.3 million
Price Range: $14.00-$16.00
Trade Date: 7/27
Underwriter(s): J.P. Morgan, Cowen, BMO Capital Markets
Filed: 7-17-17

Company: Clementia Pharmaceuticals
Symbol: CMTA
Description: They are a clinical stage biopharmaceutical company that is developing disease-modifying treatments for patients suffering from debilitating bone and other diseases with high unmet medical need.
Shares: 7.15 million
Price Range: $13.00-$15.00
Trade Date: 8/2
Underwriter(s): Morgan Stanley, Leerink Partners
Co-Manager(s): Wedbush PacGrow, BTIG
Terms Added: 7-21-17

Secondaries Announced 7.20.17

IPO BOUTIQUE CLIENTS and IPO BOUTIQUE SECONDARY ALERTS CLIENTS received ALL this information to their inbox on a REAL TIME basis.

If having real-time alerts for secondary offerings would be an advantage to you, inquire about a subscription today!

Our Buy, Neutral or Avoid ratings of the Secondaries below are intended as a recommendation for those who buy Secondaries on a regular basis. For example, this is not to be interpreted as a Buy recommendation in the traditional sense of adding to your stock portfolio; this is a short term (usually one day or opening trade) time period.

Company: SiteOne Landscape Supply, Inc.
Symbol: SITE
Price: Last Trade $51.80
Trade Date: 7/21
Re-offer Range: Subscription Needed
Shares: 5.44 million
Underwriter(s) : Deutsche Bank Securities
Rating = Subscription Needed

Company: Sachem Capital
Symbol: SACH
Price: Last Trade $4.20
Trade Date: 7/26
Shares: 2.8 million ($12m cash raise)
Underwriter(s) : Joseph Gunnar, Axiom Capital
Rating = Subscription Needed

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