After three weeks without a new issue, the IPO market is active again. There are three companies on this week's upcoming IPO calendar. They're expected to raise a combined $297 million.
The IPO market has been abnormally slow in 2015. There have only been 131 deals so far this year, down 37% from the same period in 2014. Most new issues have been healthcare firms. The number of tech IPOs has fallen to a seven-year low.
Stocks coming off new IPOs have faltered in the last two months. According to Renaissance Capital, a manager of IPO-focused ETFs, 47% of 2015 IPOs were trading below their offer price as of Aug. 21. If we're going to see a high volume of IPOs in Q4, new issues will need to start outperforming the broader market.
All three deals on this week's upcoming IPO calendar are biotech companies. One of them could become the largest medical products company to go public this year.
Here's everything you need to know about the offerings on this week's upcoming IPO calendar...
Three Healthcare Companies on the Upcoming IPO Calendar
Penumbra Inc. (NYSE: PEN) is a medical company that markets surgical access devices for neuro and peripheral vascular diseases. Founded in 2004, the California-based biotech has over 1,000 employees with offices in North America, Europe, Australia, and Asia. Penumbra's sales during the first half of 2015 increased 41% from the year-ago period. Its proposed market cap of $847 million would make it the largest medical products company to hit the market in 2015. Penumbra is set to raise $101 million by selling 3.8 million shares at a $25 to $28 price range. PEN stock will make its debut on Friday, Sept. 18.
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REGENXBIO Inc. (Nasdaq: RGNX) is developing gene therapies for rare metabolic, neurodegenerative, and retinal illnesses. The company owns the rights to a therapy delivery technology used to develop 18 drug candidates, including blood disorder medicine Baxalta, which was just offered an acquisition bid of $30.6 billion by Shire Plc. (Nasdaq ADR: SHPG). In May, REGENXBIO received $71 million in funding from notable investors like Fidelity and Vivo Capital. The lead underwriter is Morgan Stanley (NYSE: MS), which took close peer Global Blood Therapeutics Inc. (Nasdaq: GBT) public last month. REGENXBIO will raise $100 million by offering 5.56 million shares at a price range of $25 to $28. It's valued at $492 million and will begin trading on Thursday, Sept. 17.
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Nabriva Therapeutics AG (Nasdaq: NBRV) is set to begin Phase 3 trials for a class of antibiotics geared toward treating bacterial pneumonia. Nabriva boasts a leading drug candidate designated for Fast Track review by the U.S. Food and Drug Administration. Despite FDA favoritism, the candidate is years away from being approved and will face significant competition. Close peer Cempra Inc. (Nasdaq: CEMP) could impact Nabriva stock the most since Cempra also received Fast Track designation recently. Nabriva will generate $96 million by selling 6 million shares at a $15 to $17 price range. It commands a market valuation of $280 million and will hit the market on Friday, Sept. 18.
Alex McGuire is an associate editor for Money Morning who writes about upcoming IPOs. Follow him on Twitter at @AlexMcGuire92 for the biggest IPO updates.
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