IPO Roundup March 21, 2016


Funding Bounty: 10 startup funding really big this week [14 March – 20 March] – KnowStartup

This week, Real estate portal Magicbricks acquired property research and analysis portal Properji.com. FlipClass, had raised $1 million from education content provider S Chand. Let’s take a look at some of the news which made headlines in the startup space. 


HealthCare Global IPO subscribed 1.6 times | Business Standard News

The initial public offer (IPO) of equity from cancer-care network operator Enterprises (HCG) was subscribed at least 1.6 times. The final day of the issue was Friday.

The Rs 650-crore issue got bids for 25.3 million shares, against the issue size of 16.39 mn, showed data put up on the National Stock Exchange website.

The qualified institutional buyers’ portion was subscribed 2.4 times and the retail (small) investors segment 0.8 times. The non-institutional investors’ category was subscribed 0.4 times.

“We got a good response from institutional investors, including foreign ones, life insurance and mutual funds. Most of them belong to the long-only category,” said V Jayasankar, head of equity capital at Kotak Investment Banking. 


Excited about Infibeam IPO? 6 key things to know – Moneycontrol.com

With the primary market heating up, e-commerce industry is also joining the band wagon on Dalal Street. Infibeam’s IPO, the first in the ecomm space, will open for subscription on March 21-23. The company is planning to raise Rs 450 crore, with issue priced at Rs 360-432 per share. While a few are still debating on its valuations, ICICI Securities and Kotak Mahindra Capital have already dropped out from handling the issue. Reports suggested this has happened over differences about pricing and timing of the IPO. Promoters of the company include Ajit Mehta, Vishal Mehta, Malav Mehta and Jayshree Mehta. The Gujarat-based company, which operates BuildaBazaar and multi-category e-retail website Infibeam.com, offers cloud-based, modular, customizable and scalable technology platform as well as e-commerce infrastructure and logistics support for merchants, products and services. 


Week ahead: One pre-sold biotech IPO during a short holiday week – NASDAQ.com

Corvus Pharmaceuticals is the only IPO on the calendar during the shortened holiday week.

Since reaching a year-to-date low on February 11, the S&P 500 has gained 12%, while the market cap-weighted Renaissance IPO Index has surged 19%. The VIX Volatility Index has fallen to about 14, its lowest point since August 2015, and its third week in a row comfortably below 20. Among all 2015 IPOs, 74% trade below issue – an improvement over February (~80%) but still a drag on new issuance.

The year’s seven IPOs, all biotechs or small health care deals, have an average return of 20%, largely due to Editas Medicine’s (EDIT) 84% gain. Their strong performance serves as a weak signal for an open IPO market, given the substantial support these deals have received from insiders. Corvus has similar support.


2016 IPO Prospects: ironSource Strengthening Its Revenue Generating Capabilities – ironSource (Private:IRSO) | Seeking Alpha

According to a BI Intelligence report, the US mobile app-install advertising market was estimated to be worth $4.6 billion in 2015. The market is expected to grow to $6.8 billion by 2019, translating to an annual growth rate of 14%. The report estimates that mobile app install ads accounted for nearly 30% of mobile ad revenue last year. Israel’s ironSource (Private:IRSO) is hoping to take a big share of this market. 


UAE: Etihad Airways issues statement on IPO fraud

Abu Dhabi: Etihad Airways issued statement saying it has no plans for an initial public offering (IPO) and said that any announcement associating the airline with an IPO should be disregarded and reported to the authorities as a fraud.

The announcement follows an IPO-fraud activity by a clone firm calling itself Gerard and Alterman, offering Etihad Airways shares for sale to the public. 


Australian Software Co. WiseTech Global Preps IPO – Law360

Australian software firm WiseTech Global Ltd. on Friday unveiled plans for an initial public offering that could raise A$181.7 million ($138 million) to fund growth and possible acquisitions, opting to list domestically, in contrast with Sydney-based predecessor Atlassian Corp., which bolted for U.S. markets. 


Mixed results in Tokyo for IPO bonanza- Nikkei Asian Review

The Tokyo stock market witnessed six new listings on Friday, the most in a single day in more than nine years.

Opening prices for three issues exceeded their initial offer prices. Agratio urban design, which builds and sells detached homes, doubled its initial public offer price. Global Group, which operates child care facilities, exceeded its offer by 60%. Though those industries do hold promise, the results indicate that investors are drawn to sectors that are relatively stable amid the current market swings.

Two stocks debuted short of their initial offers. Aidma Marketing Communication provides marketing support utilizing big data. PhoenixBio engages in contract testing for pharmaceutical companies and other clients. Both industry segments appeared lackluster Friday despite being popular in the past. 


HealthCare Global Enterprises IPO gets tepid response from non-institutional investors | Business Standard News

The initial public offer (IPO) of HealthCare Global Enterprises (HGEL) received muted response from retail and non-institutional investors even as the IPO got good response from institutional investors. The category wise bidding data showed that the non-institutional investors (NII) category was subscribed just 43%. The retail investors’ category was subscribed 83%. The bidding for the IPO ended yesterday, 18 March 2016. The Qualified Institutional Buyers (QIB) category was subscribed 2.36 times.

Ahead of the opening of the IPO, HealthCare Global Enterprises had raised Rs 292.33 crore by selling 1.34 crore shares to a total of 13 anchor investors. The shares were allotted to the anchor investors at Rs 218 per share, the top end of the Rs 205-218 per share price band for the IPO. 


China Not Ready to Ease Market Control

China will not relax government control over the stock market, said a new securities regulator.

Those controls include how stocks are offered for public sale. Official control over first-time stock offerings, known as initial public offerings (or IPOs) will continue. Government-supported trading will also continue.

Liu Shiyu is the new chairman of the China Securities Regulatory Commission (or CSRC). The CSRC is the government agency in charge of overseeing the country’s stock markets. 


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