to disclose any participation on the IPO
prospectus. That could mean it would
choose to re-up on the IPO to build out its
position.
After all, the IPO represents a tight, 1.04-
times to 1.18-times step-up from the August
private.
Aptinyx, AvroBio, Kezar Life Sciences and
Autolus Therapeutics, by comparison, have
on average achieved a 2x step-up on their
recent IPOs, according to IFR data.
Typically, however, biotechs wait seven
months between the crossover and IPO,
according to Silicon Valley Bank.
Principia is using the proceeds to advance
development oral treatments for cancer and
autoimmune disorders that are typically
treated with injectable biologic drugs.
It expects to launch a Phase III study later
this year on a drug to treat a rare and
chronic skin disorder called pemphigus.NAVIOS EMBARKS ON GLOBAL CROSSINGNAVIOS MARITIME CONTAINERS has launched a
US$105m Nasdaq IPO.
JP Morgan, Bank of America Merrill Lynch and
Clarksons Platou started marketing the sale of
5.26m units at US$18-$20 each for pricing
on September 13.
Each unit converts into 2.87 shares of
common stock trading on the Norwegian
OTC list at an adjusted price of US$15.01 per
share. The offering is being marketed
behind an initial quarterly dividend 28.5
cents per share, bracketing a 5.7%-6.3% yield
at the indicative range.
A subsidiary of Monaco shipping
company Navios Maritime Partners, the
container unit was formed in April 2017 and
has since raised US$180m in four private
placements.
It operates a fleet of 26 container ships
and posted a first-half net profit of US$7.5m
on US$61m of revenues. The IPO proceeds
will be used to acquire five more ships this
year, including one from its parent
company.
The company intends to return between
25%-50% of net income to its shareholders
through dividends.
Navios Maritime Containers is looking to
go public at an uncertain time for the
shipping industry. The Baltic Dry Index is
off some 15% from its high in July and has
fallen for 10 consecutive sessions.
Goodbulk, a dry bulk carrier, pulled its
planned IPO in July, citing market
conditions - although, at the time, the Baltic
Dry was at annual highs.
Navios Maritime Partners also has to
overcome struggles of previous IPOs. Navios
Maritime Midstream Partners, which it
floated in 2015 at US$15 per share, trades at
just US$3.21.DICERNA RIDES ECM ROLLERCOASTERDICERNA THERAPEUTICS took investors on a
wild ride this week after it reported
positive data from a Phase I trial.
The stock popped to a three-year high of
US$17.50 on Wednesday morning after
Dicerna published proof of concept data
for its treatment for a rare kidney disease.
The deal launched after the close on
Wednesday. However, Dicerna shares
cratered on Thursday to a US$13.02 finish
and Citigroup, Leerink Partners and Stifel
ended up pricing 7.6m shares at
Thursday’s last sale.
As a result, the deal was increased in size
from 6.15m shares in order to satisfy
Dicerna’s funding needs.
The company had US$82m of cash as of
June 30, which is enough to fund
operations through the end of 2019.
Dicerna paid Alnylam Pharmaceuticals
US$2m upfront to settle a patent dispute. It
still owes Alnylam another US$13m as part
of the settlement agreement.
The offering turned out to be a gift to
the buyside. Dicerna rocketed back on
Friday to prices above US$15 a share,
creating more than US$15m in profits
among investors.
KALVISTA PHARMACEUTICALS’ US$68m
overnight raise was de-risked by
confidential marketing.
A wall-cross saw the base offering of
US$50m fully covered on the public
launch, which allowed the deal to be
increased in size.
Jefferies, Stifel and Cantor Fitzgerald ended
up pricing 4m shares at US$17, the top of
the US$16.50–$17.00 range.
KalVista went public two years ago
through a reverse merger with knee pain
specialist Carbylan Therapeutics.
KalVista shares are tightly held among
top 10 investors owning 75% of shares
outstanding.
Among the top shareholders are SV
Health (20.5%), RA Capital (11.5%) and
VHCP Management (9.3%). Merck acquired
an 8.5% stake in a US$9.1m private
placement as part of a clinical
collaboration.
KalVista raised US$14.6m in a registered
direct offering with affiliates of Venrock
Healthcare Capital Partners and affiliates
of BVF Partners last month.
KalVista completed a Phase II trial of a
back-of-the-eye injection treatment for
diabetic macular edema, and is also
working on a less invasive oral treatment.
The company is also planning a Phase II
trial of its own drug to treat a potentially
fatal swelling of the abdominal tract. The
trial is expected to begin later this year.BNPP NEAR FULL HAWAIIAN RETREATFrance’s BNP PARIBAS lit up the post-Labor Day
block trade business with a US$577m sell-
down of its stake in FIRST HAWAIIAN BANK.
As with the previous First Hawaiian block
in late July, BNPP sold 20m shares, but this
time it was to four banks rather than one.
JP Morgan, Barclays, Bank of America Merrill
Lynch and Citigroup shared the risk, helping
to justify another very tightly discounted
trade.
The banks sold-on the stock to investors at
US$28.85, the bottom of a US$28.85–$29.03
range where the top end was flat to the
close. On Thursday, the shares traded
broadly in line with the reoffer price before
ending at US$28.68.
Pricing was a tiny 0.6% discount to the
close. The previous sale in July was priced at
US$27.90 a share, a 0.8% discount, and
included a US$50m concurrent share
repurchase that was not part of the latest
offering.
BNPP cut its First Hawaiian stake to 18.4%
(potentially 16.2% with the overallotment
option) from 33.3% and could complete its
exit with one more sale.
First Hawaiian offered some broad
financial guidance alongside the deal,
disclosing that it expects net income for the
quarter ended September 30 to “continue to
trend positively”, consistent with the prior
quarter, and an improved efficiency ratio to
offset a slight fall in net interest margin.
At current prices, First Hawaiian stock
trades at 2.7 times tangible book value, lofty
for a regional bank but a slight discount to
rival Bank of Hawaii’s 2.9 times.
Both banks enjoy a strong valuation
thanks to their dominant market share in
the state of Hawaii.REITS RETURN AFTER BREAKManufactured housing and RV park owning
REIT and ECM regular SUN COMMUNITIES raisedInternational Financing Review September 8 2018 93EQUITIES AMERICAS
US EQUITIES
BOOKRUNNERS: 1/1/2018 TO DATE
Managing No of Total Share
bank or group issues US$(m) (%)
1 Morgan Stanley 111 17 ,034.68 13.5
2 Goldman Sachs 97 14,708.67 11. 7
3 JP Morgan 127 13,621.8 1 10 .8
4 Citigroup 90 11,300.11 9 .0
5 Barclays 60 9,183.19 7 .3
6 BAML 90 9,013.69 7 .1
7 Credit Suisse 62 6,513.67 5. 2
8 Wells Fargo 50 5,506. 19 4 .4
9 RBC 49 4,478.99 3.5
10 Jefferies 76 4,455.63 3.5
Total 558 126,218. 47
Including all domestic and international deals and rights issues
Source: Thomson Reuters SDC code: C3r10 Equities and SE 2250 p81-98.indd 93 07/09/2018 20:19:33