After a sluggish week for the IPO market, in which only one
deal priced -- CN Finance Holdings (CNF) -- activity is expected to pick up
this week with several IPOs on the docket. This week was really setting up to
be a compelling one for the IPO market, as high-growth cloud software company
Qualtrics was set to go public on Thursday. However, Germany-based software
company SAP (SAP) rained on that parade a bit before the week began by
announcing that it would acquire the company in an $8 bln deal.
For some quick background, Qualtrics develops cloud software that enables businesses and organizations to efficiently collect data from employees, customers, and partners. Its software gathers and analyzes a new class of data it calls "X-Data" that is richer, more immediate, and potentially more noteworthy for understanding the quality of experiences customers have than other metrics.
At the mid-point of the proposed price range, Qualtrics would have had a market cap of about $4.3 bln, so SAP is paying a hefty premium for the company. That said, Qualtrics' IPO likely would have been in very high demand, thanks to its strong growth rates and recent turn to profitability. Once Qualtrics opened for trading on the open market, it is very probable its market cap would have been much closer to that $8 bln price tag.
The acquisition news is certainly disappointing for traders and investors who were looking to get in on the IPO, but there are a few other opportunities this week that may pique investors’ interest, including a pair of healthcare IPOs.
Monday, November 12:
- No IPOs expected.
Tuesday, November 13:
- No IPOs expected.
Wednesday, November 14:
- Eton Pharmaceuticals (ETON): The specialty pharmaceutical company focused on developing products that are currently un-approved in unmet patient needs is expected to price its 3.0 mln share IPO at $6.
- Vapotherm (VAPO): The medical technology company developing Hi-VNI Technology products to treat respiratory distress is expected to price its 4.0 mln share IPO within a range of $14-$16.
Thursday, November 15:
- Centrexion Therapeutics (CNTX): The late stage biopharmaceutical company developing non-opioid and non-addictive therapies for the treatment of chronic pain is expected to price its 5.0 mln share IPO within a range of $14-$16.
- Weidai (WEI): The largest auto-backed financing solution provider in China is expected to price its 4.5 mln ADS IPO within a range of $9-$11.
Friday, November 16:
- Bain Capital Specialty Finance (BCSF): The specialty finance company, managed by Bain Capital Credit, focused on lending to middle market companies, is expected to price its 7.5 mln share IPO at $21.25.