Two health-technology companies, Livongo Health and Health Catalyst, jumped in their trading debuts this week after pricing their initial public offerings above their already-boosted forecasts and selling more stock than expected.
Wanda Sports (WSG) opened on July 26 at $6.00. The company had priced 23.8M shares at $8.00. The deal size was reduced to 23.8M shares of common stock from 28M shares of common stock and was priced below the $9.00-$11.00 range. Morgan Stanley, Deutsche Bank and Citi acted as joint book running managers for the offering. Wanda Sports is a unit under Chinese billionaire Wang Jianlin’s conglomerate Dalian Wanda Group, and owns sports properties and generates revenue from events, sponsorship and media pacts.
Vista Oil & Gas (VIST) opened on July 26 at $8.25. The company had priced 10M shares at $9.25. Citi and Credit Suisse acted as joint book running managers for the offering. Vista Oil & Gas is a company engaged in exploration and production of oil and gas, with its operations concentrated in Argentina and Mexico.
Castle Biosciences (CSTL) opened on July 25 at $20.00. The company had priced 4M shares at $16.00. The deal size was increased from 3.33M shares and priced at the high end of its $14.00-$16.00 target range. SVB Leerink and Baird acted as joint book running managers for the offering. Castle Biosciences is a cancer-focused company that provides doctors and patients with personalized clinically actionable genomic information to support more precise treatment decisions.
Livongo Health (LVGO) opened on July 25 at $40.51. The company had priced 12.7M shares at $28.00. The deal size was increased from 10.7M shares and priced above the $24.00-$26.00 target range. Morgan Stanley, Goldman Sachs and JPMorgan acted as joint book running managers for the offering. Livongo Health provides an AI technology platform that empowers patients with chronic conditions to healthier outcomes through real-time personalized monitoring and coaching as well as medication access, with an initial focus on diabetes.
In a research note ahead of the company's IPO, MKM Partners analyst Rohit Kulkarni said that while he was not making a recommendation or initiating coverage on the stock, he feels positive about Livongo's growth prospects, given its addressable market, unique hardware-software combo value proposition, and experienced management team with public company experience.
ProSight (PROS) opened on July 25 at $16.00. The company had priced 7.86M shares at $14.00. The deal size was decreased from 8.82M shares and priced below the $16.00-$18.00 target range. Goldman Sachs, Barclays and BofA/Merrill acted as joint book running managers for the offering. ProSight is an entrepreneurial property and casualty insurance company that focuses on select niche industries.
Health Catalyst (HCAT) opened on July 25 at $37.50. The company had priced 7M shares at $26.00. The deal priced above the target $24.00-$25.00 range. Goldman Sachs, JPMorgan and William Blair acted as joint book running managers for the offering. Health Catalyst provides software and services solutions to healthcare organizations that assists them in managing and using data to improve their operations.
Sunnova Energy International (NOVA) opened on July 25 at $11.00. The company had priced 14M shares at $12.00. The deal size was reduced to 14M shares from 17.6M shares and priced at the low-end of the revised $12.00-$13.00 price range. BofA/Merrill, JPMorgan and Goldman Sachs acted as joint book running managers for the offering. Sunnova Energy International provides residential solar energy systems and services and expects to raise up to $100M in its initial public offering.
- Wanda Sports had this year's second-worst debut, falling 36%.
- Vista Oil & Gas finished Friday at $9.10.
- Castle Biosciences ended the week at $22.90 after opening at $20.00.
- Livongo Health soared in its first trading day and finished the week at $38.60.
- ProSight ended its trading debut at $67.40.
- Health Catalyst jumped on Thursday after opening higher than its offer price of $26.00.
- Sunnova Energy International ended Friday at $11.50.
UPCOMING IPOS: Among the upcoming IPOs are Sundial Growers (SNDL), Kura Sushi USA (KRUS), Dynatrace (DT), Rapt Therapeutics (RAPT) and WiMi Hologram Cloud (WIMI).
Sundial Growers is a Canadian cannabis producer that crafts cannabis brands under the monikers Heal, Help and PlayTM. The company expects to raise $130M at the midpoint of the offering.
Kura Sushi USA operates a chain of sushi restaurants in the U.S. and aims to raise $43.5M in its U.S. IPO of Class A stock.
Dynatrace is a software company that helps business track the performance of their software applications and is looking to raise $300M in its IPO.
Rapt Therapeutics is focused on developing small-molecule drugs for patients with high unmet clinical needs in oncological and inflammatory diseases.
WiMi Hologram Cloud has developed a holographic AR advertising software that allows customers to insert real or animated 3D objects into video clips.
"Opening Day" is The Fly's recurring series of stories on the latest initial public offerings, their performance, analyst commentary and upcoming IPOs.