Deerfield Beach, FL / September 19, 2014 / As the U.S. economy continues to recover, deal making activity has surged. Indeed, both M&As and initial public offerings (IPO) have seen a surge this year. In fact data from Dealogic shows that companies raised $46.4 billion in the first eight months of 2014, the highest of any year since 2000. The value of IPOs will get a huge boost as Chinese e-commerce company Alibaba Group Holding Ltd. (NYSE: BABA) completed its IPO on Thursday.
Alibaba's IPO will be the largest ever for a U.S.-listed company. On Thursday, the company priced its IPO at $68 per share. The company is raising more than $20 billion in the IPO. At $68 per share, the company has a market value of $167.6 billion, which takes it past some of the biggest technology companies in the U.S. Alibaba shares will begin trading on the NYSE on Friday under the ticker BABA.
While Alibaba is perhaps the most talked about IPO since Facebook Inc. (NASDAQ: FB) listed its shares in May 2012, there have been a number of smaller IPOs this year that deserve some attention.
Ruthigen Inc. (NASDAQ: RTGN)
Santa Rosa, California-based biotechnology company Ruthigen Inc. (NASDAQ: RTGN) completed its IPO in March this year. Ruthigen focuses on the discovery, development and commercialization of pharmaceutical-grade hypochlorous acid or HOCI-based therapeutics designed to prevent and treat infection in invasive applications.
Ruthigen's lead product candidate RUT 58-60, a broad spectrum anti-infective designed to prevent and treat infections in surgical and trauma procedures, addresses a major unmet medical need. The company completed its IPO just as it began preparing for a planned Phase 1/2 clinical trial of RUT 58-60.
Ruthigen priced its IPO of 2.65 million units at $7.25 per unit. Each unit includes one share of RTGN common stock and one Series A Warrant. The warrant can be exercised for one share of common stock and one Series B Warrant to purchase one share of RTGN common stock.
Ruthigen shares are currently trading at around $4.50. The stock has traded in a range of $4.05 and $8.47 since the IPO. Ruthigen is also progressing well towards its planned Phase 1/2 clinical trial of RUT 58-60.
RSP Permian Inc. (NYSE: RSPP)
The shale boom in the U.S. has generated significant interest in exploration and production companies that focus on shale gas and especially tight oil. One such company listed its shares in January this year.
Dallas, Texas-based RSP Permian is an independent oil and natural gas company focused on the acquisition, exploration, development and production of unconventional oil and associated liquids-rich natural gas in the Permian Basin of West Texas. The Permian Basin is one of the most prolific areas when it comes to oil exploration in the U.S. Not surprisingly, there has been a great deal of interest in RSP Permian since the IPO.
RSP Permian raised $390 million in its January IPO. Shareholders sold 20 million shares in the IPO, which were priced at $19.50 per share. RSP Permian shares have done well since the IPO and are currently trading between $19.50 and $33.67. The stock has fallen from its all-time high levels in recent weeks as oil prices have come under pressure, hurting shares of exploration and production companies.
Rice Energy Inc. (NYSE: RICE)
Rice Energy, another independent oil and gas company, also listed its shares in January this year. Based in Canonsburg, Pennsylvania, Rice Energy is engaged in the acquisition, exploration and development of natural gas and oil properties in the Appalachian Basin.
Rice Energy raised $924 million in its January IPO. The company offered 44 million shares, priced at $21 per share. The offering was at the high end of the company's projected range of $19 per share to $21 per share. At the time of the IPO, the company said that it plans to use the proceeds from the IPO to repay its debts and also make a $100 million payment to Alpha Holdings in partial consideration for the Marcellus joint venture buy-in.
Rice Energy shares are currently trading around $30 and the stock has traded in the range of $20.78 and $34.34 since the IPO. The company has a market capitalization of $4.12 billion currently.
Foamix Pharmaceuticals Ltd. (NASDAQ: FOMX)
One of the most recent IPOs in the biotechnology space is that of Foamix Pharmaceuticals. The Israel-based company priced its IPO of 6.7 million shares at $6 per share. The IPO was completed earlier this week. The company's shares closed $6.22 on September 18th.
Foamix Pharmaceuticals, a clinical stage specialty pharmaceutical company, focuses on the development and commercialization of minocycline foam for the treatment of acne, impetigo and other skin conditions. The company's product candidates include FMX101 for moderate-to-severe acne and FMX102 for impetigo. The company has a market capitalization of $123.72 million currently.
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SOURCE: Emerging Equities