Upcoming October 2018 IPO's

IPO stands for Initial Public Offering. An IPO occurs when a company decides to move from being a privately held company to one that will begin trading on a stock exchange (like the New York Stock Exchange (NYSE) or the Toronto Stock Exchange (TSE)). This move allows both big institutional investors (like a pension fund that is investing money for all the people that will need to draw on the pension some day), as well as individual investors, like you and me, to become owners of the company. Most often, companies move from being privately held to publicly held to raise money for continued growth or to pursue various business ventures. Shares are issued at a certain price and the money goes to the company. This amounts to a large influx of cash to which the company otherwise would not have had access without going public and issuing shares. Another reason companies go public is to allow the owners to monetize their investment or ownership of the company. The owners of the private company will receive shares that they are then free to sell on the public exchange for the going rate. Some companies prefer to stay private and avoid the often onerous and costly regulations and requirements for disclosure that comes with becoming a public company.

As an example, Eventbrite is a recent company that went public. I briefly talked about it on The Capital Pink Instagram account but a quick recap is that it was issued at $23 a share and today it is at $34.34 per share.

It is interesting to see which companies will be going public in the near future. Nasdaq.com has listed the October 2018 IPO’s on its site and I have provided the following description of what the company is all about:

  1. Anaplan, Inc. (PLAN) (NYSE): Founded in the UK but now based in San Francisco. It is a cloud-based business planning and performance management platform. It is software to allow teams and people to collaborate. It has some large customers such as: Carter’s clothing, Telus, Target Australia, Sonos, RSA, Circle K convenience stores, United Airlines, Accor hotels and many more.

  2. Osmotica Pharmaceuticals, PLC (OSMT) (Nasdaq Global): Bio-pharmaceutical company with promoted specialty products (ADHD, Parkinsons, Musculoskeletal pain, opioid and plant-based estrogen) and 35 non-promoted products. Areas are specialty neurology and women’s health.

  3. Livent Corp. (LTHM) (NYSE): Leading producer of lithium compounds. Broad portfolio of products for electric vehicles and energy storage applications.

  4. Arya Sciences Acquisition Corp. (ARYAU) (Nasdaq Capital): A blank cheque company looking to acquire a company, possibly in healthcare.

  5. Elastic N.V. (ESTC) (NYSE): Search software allowing customers to search and index vast amounts of data. Examples and customers: CBC (Canadian broadcaster) - evaluate, analyze and track content performance, Vimeo - allowing customers to get the video they want through search and Sprint - allows the analysis of 3 billion events a day,

  6. Guardant Health, Inc. (GH) (Nasdaq Global Select): Genomic cancer testing from a single blood draw. Analyzes the genomic nature of a patient’s particular cancer to help determine best treatment options.

  7. Kodiak Sciences, Inc. (KOD) (Nasdaq Global): Clinical company developing ophthalmology treatments.

  8. Upwork, Inc. (UPWK) (Nasdaq Global Select): Global freelancing platform. Businesses and individuals can easily connect with freelancers in a variety of areas such as marketing, accounting, writing, IT, etc.

It will be interesting to watch where each of these companies go in the next few years and what kind of growth they experience.

*** Top photo courtesy of Chris Lawton on Unsplash