The post-Thanksgiving IPO market got off to a slower start than expected, with just one company raising $67 million, no filings and three launches this week, including Apollo-backed fixed-annuity provider Athene Holding, fluid subsystem delivery provider Ichor Holdings and Texas- and Louisiana-based E&P Wildhorse Resource Development. While Wildhorse launched its IPO just one day after OPEC reached a deal to cut production, we believe that most other JOBS act companies will wait to file, as it is too late for them to launch an IPO in 2016.
At the start of December, the average 2016 US IPO is up 26%, and 72% of IPOs are trading above their offer price, compared to one year ago, when just 44% of IPOs were trading above their offer price
IPO Pricings Week of November 28th, 2016 Issuer
Business Deal Size
($mm) Market Cap
($mm) Price vs.
midpoint First day
at 12/2 Innovative Industrial Properties REIT
REIT focused on medical-use marijuana $67 $68 0% -4.3% -7.8% Click to enlarge
Up in smoke: Marijuana REIT cuts deal multiple times to complete IPO
Innovative Industrial Products REIT (Pending:IIPR), a newly-formed REIT focused on medical-use cannabis cultivation facilities, raised $67 million by offering 3.35 million shares at $20; however, the pricing came after multiple updated filings, which both eliminated shares to be offered to management at no cost and slashed the deal size from $175 million to $80 million, before it further downsized the offering at the pricing. The IPO came at a tough time for REITs, as rates are widely expected to be raised at the December meeting of the Fed. Despite an experienced management team and the recent legalization of recreational marijuana in multiple states, the company faces increased scrutiny due to the dubious federal legal status of marijuana cultivation and production. The company traded off 4% on its first day and closed week down
best it stocks: ArQule Inc.(ARQL)
- [By Paul Ausick]
ArQule Inc. (NASDAQ: ARQL) dropped about 23% Friday, to post a new 52-week low of $1.13 after closing at $1.47 on Thursday. The stock’s 52-week high is $2.17. Volume was about 15 times the daily average of around 150,000 shares. The biopharmaceutical company said this morning that a phase 3 trial of a cancer drug did not meet the primary endpoint of improving overall survival.
best it stocks: Celanese Corporation(CE)
- [By Ben Levisohn]
Time To Favor Optionality: Most macro data are similar to, or better than, when the merger was announced. As a result, the same returns have been obtainable, with significantly less stress, simply through owning 3M (MMM) or a basket of chemical companies that approximate the Dow-DuPont portfolio. Relative to the chemical sector, performance has been average, leverage appears reasonable but near-term FCF less-than compelling partly due to new capacity ramping. With the merger likely to close in the near-term (90% chance, in our view), we believe Dow-DuPont will have an opportunity to show how scale creates optionality. The overhaul at Celanese (CE) over the past few years shows the way.
- [By Zacks]
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Albemarle Corporation (NYSE: ALB): Free Stock Analysis Report
Celanese Corporation (NYSE: CE): Free Stock Analysis Report
Kronos Worldwide Inc (NYSE: KRO): Free Stock Analysis Report
Koppers Holdings Inc. (NYSE: KOP): Free Stock Analysis Report
Chemours Company (The) (CC): Free Stock Analysis Report
Kraton Corporation (NYSE: KRA): Free Stock Analysis Report
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best it stocks: KNOT Offshore Partners LP(KNOP)
- [By ]
If I Could Only Choose One…
Of all the double-digit yielders in my screening universe, Knot Offshore Partners (NYSE: KNOP) has the strongest coverage ratio. The company is currently distributing annual payments of $2.08 per share, and the average earnings estimate for next year is $2.51 per share — for a comfortable coverage ratio of 121% ($2.51/$2.08).
best it stocks: CNO Financial Group, Inc.(CNO)
- [By Paul Ausick]
CNO Financial Group Inc. (NYSE: CNO) dropped about 8.1% on Friday to post a new 52-week low of $14.29 against a 52-week high of $20.88. Volume of more than 6 million was more than 3 times the daily average of around 1.8 million. The stock closed at $15.55 on Thursday night. The company on Thursday cut its re-insurance agreements with Beechwood Re following disclosure that regulators that many of Beechwood’s assets did not comply with insurance company guidelines.
best it stocks: StoneMor Partners L.P.(STON)
- [By Monica Gerson]
The list of below stocks is notable as the shares have traded on sequentially increasing volume spanning the trading days from September 16 to September 20: