IFR US ECM Weekly Review
Weekly totals
Total*: $5bn – IPOs $2.6bn – ABBs/Blocks $853m – Follow-ons $0 – CBs $1.5bn – SPACs $260m.
*Ex SPACs.
Pricings
Monday
Chenghe Acquisition III (Singapore, SPAC) ─ $110m IPO. 11m units (Primary) at $10.00. BTIG. Nasdaq “CHECU”. Each unit comprises one share and one-half warrant. Chenghe Group. Targets in Asia. 18 months. 100% in trust.
Oscar Health (US, health insurance) – $355m 5y cvt priced at 2.25%, up 32.5% versus 2.25%-2.75% and 30%-35% marketing. WF, MS, BOFA, JPM. Upsized from $350m. Capped call to $37.46, 100% premium. Wall cross.
Permian Resources (US, E&P) – $623.9m Block. 46.1m shares (Secondary) at $13.53 versus $13.53-$13.70 marketing and $13.70 last sale. MS, CITI, GS. The company is buying back another 2m share repurchase from selling shareholders Pearl Energy and Riverstone Investments in a concurrent private placement. Priced premarket open Monday.
Tuesday
Adtran (US, telecom equip) – $175m 5y cvt priced at 3.75%, up 30% versus 3.75%-4.25% and 27.5%-32.5% marketing. EVER. Upsized from $150m. Capped call to $15.51, a 75% premium.
Cytokinetics (US, biotech) ─ $650m 6y cvt priced at 1.75%, up 37.5% versus 1.75%-2.25%, up 32.5%-37.5% marketing. MS, CANT, MIZU. Upsized from $550m. Repurchasing $399.5m principal of 3.5% CB due 2027 for $402.5m in cash plus $107.9m in stock (2.17m shares).
Diversified Energy (US, energy E&P) ─ $78.6m ABB. 5.7m shares (Secondary) at $13.75 versus $13.70-$14.05 marketing and $15.41 last sale. MIZU, RJ, CITI. Wall cross. EIG and KKR are the selling shareholders.
Pebblebrook Hotel Trust (US, hotel REIT) ─ $350m 5y cvt priced at 1.625%, up 37.5% versus 1.5%-2% and 35%-40% marketing. RJ. Concurrently repurchased $400m of $750m principal of 1.75% CB due 2026. Repurchased 4.3m shares ($49.7m) of stock from 1.75% holders. Capped call to $20.23, a 75% premium
StubHub (US, ticket exchange) – $800m IPO. 34m shares (Primary) at $23.50 versus $22-$25 marketing. JPM, GS. NYSE “STUB”. 5% DSP. Retail investors participating through SoFi Securities and Robinhood Financial.
WaterBridge Infrastructure (US, oilfield services) ─ $634m IPO. 31.7m shares (Primary, Secondary) at $20.00 versus $17-$20 marketing. JPM, BARC, GS, MS, WF. NYSE/NYSE Texas “WBI”. Upsized from 27m shares. 10% DSP. Horizon Kinetics indicated for $120m of offering.
Wednesday
Netskope (US, cybersecurity software) ─ $908.2m IPO. 47.8m shares (Primary) at $19.00 versus $17-$19 marketing. MS, JPM, BMO, TDC, CITZ, MIZU, WF, DB. Nasdaq “NTSK”. Price range increased from $15-$17 on 9/16.
Red Cat (Puerto Rico, drone software) ─ $150m ABB. 15.6m shares (Primary) at $9.60 versus $11.27 last sale. LTHM.
Thursday
Galata Acquisition II (Cayman Islands, SPAC) ─ $150m IPO. 15m units (Primary) at $10.00. BTIG. Nasdaq “LATAU”. Each unit comprises one share and one third warrant. Callaway Capital. Fintech. 24 months. 100% in trust.
Pattern Group (US, ecommerce software) ─ $300m IPO. 21.4m shares (Primary, Secondary) at $14.00 versus $13-$15 marketing. GS, JPM, EVER, JEFF. Nasdaq “PTRN”. 5% DSP. Retail investors participated through SoFi Securities and Robinhood Financial.