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 (NASDAQ: 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 (NYSE: 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 (NASDAQ: 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 (NASDAQ: 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