Category Archives: Financial Markets

Seven Houston companies have gone public in recent weeks

Seven Houston-area companies have completed their Initial Public Offerings (IPO) since the beginning of September.

Academy Sports & Outdoors, raised $203 million by selling 15.6 million shares at $13, well below the range of $15 to $17.  The shares (ACO) are currently trading at $14.76, giving the company a market capitalization of $1.3 billion.  It has its head office in Katy.



Kiromic Biopharma completed its IPO on October 15. The company initially filed back in May. It is based in the Medical center district and is developing immunotherapies for blood cancers and solid tumors. Kiromic raised $15 million by offering 1.3 million shares at $12. This was at the low end of the range $12 to $14. It is trading on the Nasdaq under the symbol KRBP.

Greenwich Life Sciences is another biotech company developing immunotherapies for breast cancer. The company, based in Stafford, raised $7 million by offering 1.3 million shares at $5.75 each. That was much lower than the original plan of raising $21.6 million at $7.50 to $8.50 each.

The remaining companies that went public are blank check companies.

Good Works Acquisition Corp raised $150 million. The company has its head office in the Galleria. It will trade on the Nasdaq under the symbol GWACU.

It is focused on finding a business in financial distress with an enterprise value of between $400 million and $600 million. Fred Zeidmann is the Chairman and CEO. He has served as Chairman of Gordian Group LLC, a U.S. investment bank specializing in board level advice in complex financial matters since December 2014.

Landcadia Holdings III completed its IPO on October 8. It raised $500 million and is listed on the Nasdaq under the symbol LCYAU. This is the third blank check company launched by Tilman Fertitta, CEO of Landry’s and Richard Handler, the CEO of Jefferies. As before, the company plans to acquire a business in the consumer, dining, hospitality or entertainment sectors.

Peridot Acquisition Corp has its head office in the River Oaks area. It raised $300 million and is listed on the NYSE under the symbol PDAC.U

The company is looking to buy a business that focuses on environmentally sound infrastructure, industrial applications and disruptive technologies that eliminate or mitigate greenhouse gas emissions. The target should have an enterprise value of between $800 million and $2 billion. Carnelian, a PE firm based in Houston, is backing the company. It has $1.8 billion in cumulative equity commitments in traditional E&P companies.

Industrial Tech Acquisitions raised $75 million. The company has its head office in the Galleria area. It is seeking to buy a technology business operating in the industrial or energy area. This includes software, mobile and IoT (Internet of Things) applications, cloud communications and ultra-high bandwidth services. Targets would have an enterprise value of between $250 million and $500 million.

The complete list of Houston-area public companies can be found here.

 

 

 

Three Houston blank check companies file to go public

Three Houston-area blank check companies have filed to go public in the last few days. This is part of a record year for such companies. According to the Wall Street Journal, blank check companies have raised $41 billion so far this year, compared to $14 billion last year.



Landcadia Holdings III

Landcadia Holdings III filed to go public. This is the third blank check company launched by Tilman Fertitta, CEO of Landry’s and Richard Handler, the CEO of Jefferies. They plan to raise $500 million. As before, the company plans to acquire a business in the consumer, dining, hospitality or entertainment sectors.

Landcadia Holdings went public in 2016 and acquired Waitr Holdings, an online food ordering and delivery service, in 2018 for $308 million. The business has had a rough ride since (3 CEO’s and 3 CFO’s), though the pandemic has been good for the business.

Landcadia Holdings II went public in May 2019. It is in the process of buying the Golden Nugget Online Gaming business from Landry’s.

Genesis Park Acquisition

Genesis Park Acquisition Corp has filed for a $200 million IPO. The company is led by chairman David Siegel, who is also Executive Chairman of an ultra-low-cost airline carrier, Sun Country Airlines. Together with CEO Paul Hobby (the Founding Partner of PE firm Genesis Park LP), they are seeking a business in the aviation sector with an enterprise value of between $500 million and $1 billion.  The CFO is Jonathan Baliff, former CFO and CEO at Bristow.

Delwinds Insurance

Delwinds Insurance Acquisition has also filed for a $200 million IPO. It is a blank check company formed by The Gray Insurance Company. CEO Andrew Poole is an investment consultant at Gray while CFO Bryce Quin, is a process improvement specialist at Gray. They previously led a blank check company called Tiberius that went public in 2018. It subsequently acquired International General Insurance earlier this year.

Delwinds plans to target businesses in the insurance technology sector or brokers or carriers that use insurance technology (i.e using data analytics or artificial intelligence to better price risk or automate back offices procedures).

Recently gone public

Peridot Acquisition Corp became the latest Houston-area blank check company to go public when it raised $300 million, effective September 23, 2020. The business was formed by Carnelian Energy Capital and is seeking a business with a positive environmental impact.

Industrial Tech Acquisitions raised $75 million in early September. It is searching for industrial and energy technology businesses with an enterprise value of between $250 million and $500 million.

Graf Industrial, which went public in October 2018, is in the process of acquiring Velodyne Lidar, based in San Jose.