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Alpine Income (PINE) and Canaan (CAN) top billing on US IPO market this week

 

  • Canaan (CAN) filed for $400m deal in October but more conservative $100m IPO set to go live this week.
  • Alpine Income Property Trust (PINE) set for biggest deal at $150m.
  • Three other IPOS and two SPACs expected to raise a collective $634m.

 

Alpine Income Property Trust and Canaan will hold two of the biggest IPOs on the US market just days after 89bio (NASDAQ:ETNB) closed out a blockbuster showing by soaring 69% for the second-highest float in Q4.

Chinese cryptocurrency equipment manufacturer Canaan reiterated its intentions to go public last week and the 10 million share deal priced at $9–$11 is expected to raise around $100m at the mid-range when it goes live before Friday (22nd November).

The Hangzhou-based company has flirted with offerings in the past with a rumoured $1bn deal in 2018, but it will now opt for a much more modest deal after originally filing for proceeds of $400m in late October.

Canaan’s prospectus positions itself as a potential profit-maker after booking a 61% net margin in Q1 2018, but the volatility of Bitcoin (BTC) may be an issue for investors as a recent price slump saw the company’s sales decline 96% in Q1 2019.

The deal run by Citi Group and ChinaRen is set to create by far the biggest market valuation this week at $1.581m.

Alpine Income Property Trust is the lead deal in size ($150m), but a 7.5m common share sale at $19–$21 is only expected to push market valuation to around $182m as Raymond James and Baird take top bookrunning roles.

The retail and office REIT was spun out from Consolidate-Tomoka (NYSE:CTO) and while it remains a relatively small company, a 100% leased portfolio and robust acquisition pipeline should attract investors who want to see solid growth in the short- to medium-term.

Chinese consumer credit collection services company YX Asset Recovery (YXR) filed for its $81m IPO on Friday following a short period of marked growth.

It expects to sell $9.282m shares at $7.75–$9.75 before the end of the week and raise $81m in the process for a new $541m market valuation. Deutsche Bank and CMB International Capital are working on the deal.

Investors will be enticed by YX’s strong top-line revenue growth and increasing gross profit, but topsy turvy operating profit and cash flow may be a concern.

SiTime (SITM), a MegaChips spin-off, will sell 4.3 million shares at $13–$15 this week in anticipation of $60m proceeds raised and a fresh $200m market cap. Barclays and Stifel are taking the lead.

LMP Automotive Holdings (LPMX) also has its sights set on an $18m deal with 3.227 million shares up for grabs at $5–6 each.

Companies going public will be buoyed by biotech 89bio’s (NASDAQ:ETNB) impressive start to life on the Nasdaq after its shares priced at the midpoint before closing the first session 30% higher and making further gains for a +69% return.

Fleet management operator YayYo (NASDAQ:YAYO) also went public, and while a 50% drop off from the midrange at open represented a lukewarm reception at best, it did manage to rally to -10% by Friday.