Securities Regulation Daily Wrap Up, IPO TRACKER—Three of week’s five new issuers are software developers, (May 1, 2018)
Organizations Mentioned:Docusign, Inc. | Dropbox, Inc. | EVO Payments International | Goldman Sachs
Prepackaged software companies (SIC 7372) accounted for three of the last week’s five new issues. The industry doubled its IPO total for 2018, with five of the six offerings coming in April. Morgan Stanley served as first lead manager for last week’s software deals by DocuSign and Smartsheet. DocuSign’s $629 million offering was the second largest SIC 7372 IPO of the year behind Dropbox’s $756 million IPO. Smartsheet went public with a dual class share structure that will convert to a single class after not more than seven years. Human capital management software developer Ceridian HCM Holding also made its public market debut. The company sold $462 million in shares, but remains controlled by Thomas H. Lee Partners and Cannae Holdings. The week’s other IPOs included an offering by semiconductor and fiber laser producer nLIGHT. Smartsheet and nLIGHT are the first 2018 new issuers based in Washington, which was home to two IPO companies last year. Personal line insurance provider Goosehead Insurance also began trading. The deal was the first in the U.S. by an SIC 6411 company (Insurance Agents, Brokers & Service) since January 2015.
New registrants. The week’s activity included five new registrations. EVO Payments and GreenSky, both of which facilitate payments between merchants and banks, registered last week. The companies will make use of an Up-C structure in which they use the offering proceeds to purchase an interest in an operating LLC. Existing shareholders will continue to control EVO Payments and GreenSky following their offerings. Goldman Sachs, which was selected as GreenSky’s lead underwriter, also was selected as lead manager by new registrant Kiniksa Pharmaceuticals. Bermuda-based Kiniksa is developing treatments for autoinflammatory and autoimmune-related diseases. The health care industry also added new registrant Scholar Rock Holding. The company makes medicines for spinal muscular atrophy and other conditions by targeting signaling proteins. Scholar Rock has raised more than $100 million by selling preferred shares to investors such as Kraft Group and affiliates of Fidelity. The week’s other filer was Las Vegas-based MR2 Group, an information research consulting firm. Prior to the IPO, the company will reorganize its operations into three subsidiaries. MR2 Group’s offering will be led by ThinkEquity, which last served as lead manager on a completed IPO in 2006.
Withdrawals. No companies opted to withdraw their pending IPO registration statements last week.
The information reported in IPO Tracker is gathered using IPO Vital Signs, a Wolters Kluwer Regulatory U.S. database that includes all SEC registered IPOs, including REITs and those non-U.S. IPO filers seeking to list in the U.S. markets. IPO Vital Signs does not track closed-end funds, best efforts or non-underwritten deals, or IPO offerings for amounts less than $5 million.
Companies:Ceridian HCM Holding Inc.; nLIGHT, Inc.; DocuSign, Inc.; Dropbox Inc.; Goosehead Insurance, Inc.; Smartsheet Inc.; EVO Payments, Inc.; MR2 Group, Inc.; GreenSky, Inc.; Kiniksa Pharmaceuticals, Ltd.; Scholar Rock Holding Corp.
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