Four IPOs from China – out of eight on the calendar – are set in Wall Street’s four-day work week ahead of Easter and Passover. This fact follows the sharp selloff last week, when the Dow Jones Industrial Average lost 1,149 points in the final two days. The slide was triggered by fears of a trade war between the United States and China. Perhaps it’s a good thing that the U.S. stock markets will be closed on Good Friday.
The four Chinese IPOs are expected to be priced in the first three days of the week, as outlined below.
Monday for Tuesday – Hotels
The first to appear on the IPO calendar is GreenTree Hospitality Group (GHG proposed), a Shanghai-based franchised-and-managed hotel operator. The deal is set to be priced on Monday afternoon to trade on the New York Stock Exchange on Tuesday morning. The company was formed in 2004. GreenTree operates 2,289 hotels in 263 cities in 27 provinces in China.
Tuesday for Wednesday – Entertainment and Education
Bilibili (BILI proposed) is a Shanghai-based operator of mobile games and other online entertainment for young people in China. The deal is scheduled to be priced Tuesday afternoon to trade on the Nasdaq Global Select Market on Wednesday morning. About 81.7 percent of the company’s user base is Generation Z, made up of individuals born from 1990 to 2009 in China, according to QuestMobile.
OneSmart International Education Group (ONE proposed), based in Shanghai, is the largest premium K-12 after-school education service provider in China, with the largest market share – at 2.4 percent – measured by revenue, according to Frost & Sullivan. The company provides tutoring services in China. OneSmart offers premium education services as well as language and cultural programs for children. OneSmart operated a nationwide network of 225 study centers across 42 cities in China as of Nov. 30, 2017.
Wednesday for Thursday – China’s “Netflix”
iQIYI (IQ proposed), based in Beijing, is an innovative market-leading online entertainment service in China. Some have called iQIYI the “Netflix” of China. The company believes it is one of the largest Internet companies in China in terms of user base. Its subscribing members reached 60.1 million as of Feb. 28, 2018, and over 98 percent were paying, according to the prospectus. Through its license partner, iQIYI operated the largest smart TV video streaming service in China as measured by monthly active devices in December 2017, according to the iResearch Report.
Note: Baidu Holdings will own 93.1 percent of iQIYI’s voting power after the offering, according to its prospectus.
Note: Baidu, iQIYI’s parent company, and Hillhouse Capital, a long-term asset manager affiliated with iQIYI’s shareholder HH RSV-V Holdings Limited, have indicated an interest in buying up to US$200 million worth of the American Depositary Shares being offered.
Two Healthcare IPOs
On Wednesday, two healthcare IPOs are scheduled to be priced for trading on Thursday morning: Homology Medicines (FIXX proposed) and Unum Therapeutics (UNUM proposed).
Homology Medicines is a Bedford, Massachusetts-based genetic medicines company. Homology is working on gene editing and gene therapy solutions, using its proprietary stem-cell technology platform, to treat patients with rare genetic diseases, including central nervous system disorders. The company’s goal is to transform the lives of patients suffering from rare genetic diseases by curing the underlying cause of the disease.
Note: Insiders have issued indications of interest for up to $50 million of the $100 million IPO.
Unum Therapeutics is a Cambridge, Massachusetts-based clinical-stage biopharmaceutical company. Unum is focused on the development and commercialization of novel immunotherapy products designed to harness the power of a patient’s immune system to cure cancer. Its leading product candidate is targeting non-Hodgkin’s lymphoma.
Note: Insiders have issued indications of interest for up to $37.5 million of the $75 million IPO. In addition, Seattle Genetics, Inc., a collaborator, is in for a $5 million private placement.
California Banking and Bermuda Customer Support
The rest of this week’s IPO calendar is diverse: OP Bancorp (OPBK), a California bank holding company that caters to the Korean-American community, is scheduled to price its offering on Tuesday for Wednesday trading. IBEX Holdings (IBEX proposed) is a Bermuda-based company whose technology helps its clients interact with their customers. IBEX is set to price its IPO on Wednesday for Thursday trading.
OP Bancorp is a Los Angeles-based bank holding company. OP Bancorp offers commercial banking services to small and medium-sized businesses, their owners and retail customers with a focus on the Korean-American community.
Note: This is a public offering. It shares have traded on the OTCQB Market under the symbol “OPBK” since March 2016. Recently traded at $11.30.
IBEX Holdings is a Bermuda-based end-to-end provider of technology-enabled customer lifecycle experience (CLX) solutions. Through IBEX’s integrated CLX platform, the company offers a comprehensive portfolio of solutions to optimize customer acquisition, engagement, expansion and experience for its clients. These solutions help the company’s customers build their brands, retain customers and reach new customers.
(For more information about these companies and others on the IPO calendar, please check the profiles found on IPOScoop.com’s website.)
Next Week: Spotify
For the week of April 2, 2018, the calendar has one IPO. It is the direct public offering of Spotify Technology S.A. The insiders will offer up to 55.7 million shares at a price to be determined later. It shares have traded from a low of $48.93 to a high of $132.50 between Jan. 1, 2018, and March 14, 2018, according to the prospectus.
Nevertheless, anything can happen when the SEC’s filing window opens again for business on Monday morning.
Stay tuned.
Disclosure: Neither the author nor anyone else on the IPOScoop.com staff has a position in any stocks mentioned, nor do we trade or invest in IPOs. The author and IPOScoop.com staff do not issue advice, recommendations or opinions.