The Next Big Biotech IPO
Plus, NextEra’s extra units.
Today is Thursday, September 15, 2022.
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The Next Big Biotech IPO
Clinical-stage biopharmaceutical company Third Harmonic Bio (Nasdaq: THRD) is set to go public today - one of the first big IPOs for investors in a long time.
Details: As of late Wednesday, the IPO was priced at $185.3 million, up from $153 million last week. With the $185.3 million price tag, the company is offering 10.9 million shares at $17 each. The price will likely tick up when it goes public today.
Bigger Picture: With the stock market in rough shape, it’s been a bad year for IPOs. During the first half of the year, the number of IPOs slowed down to a five-year low. It’s been especially bad for biotechnology. Last year, there were giant biotech IPOs frequently coming out, but not in 2022. Third Harmonic’s IPO is the largest for biotech since May, according to BioPharma Drive.
Final Thoughts: Investors who are bullish about biotech are excited about Third Harmonic. Keep in mind that the company is still in its early stages and is not profitable yet.
Notable Earnings Today: Adobe (Nasdaq: ADBE), Mytheresa (NYSE: MYTE), Innate Pharma (Nasdaq: IPHA).
Notable IPOs Today: Corebridge Financial, Inc. (NYSE: CRBG), Third Harmonic Bio, Inc. (Nasdaq: THRD).
Notable Equity Crowdfunding Campaigns Ending Today: Loverly (Netcapital), Timeplast (StartEngine), Helios (Republic), Statum Systems (StartEngine), Tender Fire (Mainvest), Myaderm (StartEngine), Lolaark Vision (StartEngine).
Notable Economic Events Today: Jobless Claims (8:30 a.m. ET), Core Retail Sales / Retail Sales (8:30 a.m. ET), Philadelphia Fed Manufacturing Index (8:30 a.m. ET), NY Empire State Manufacturing Index (8:30 a.m. ET), Export Price Index / Import Price Index (8:30 a.m. ET), Industrial Production (9:15 a.m. ET), Business Inventories (10:00 a.m. ET), Retail Inventories Ex Auto (10:00 a.m. ET).
NextEra’s $2 Billion Extra Equity Units
Shares of NextEra Energy (NYSE: NEE) dropped 3.86% in after-hours trading on Wednesday after the energy company announced it intends to sell $2 billion of equity units.
Details: Each equity unit will be issued in the amount of $50 and consist of a contract to purchase common stock in the future along with a 5% undivided beneficial ownership interest in a company debenture due Sept. 1, 2027, to be issued in the principal amount of $1,000.
Proceeds: The capital from the extra equity units will total $1.94 billion and be used for general funds in energy and power projects mainly.
Stock Price: NextEra’s stock is down about 3% this year, which is better than most equities.
Final Thoughts: Investors really didn’t like the new equity units on Wednesday because it might water down the stock price.
Equity Crowdfunding Spotlight: Stock Card
Briefly describe your business. Stock Card brings digestible investment insights to individual investors, enabling them to invest based on facts, less on emotions, and get higher returns. It grows through partnerships with financial creators who bring model portfolios to investors.
What are the terms of the investment for your campaign? Stock Card is raising a max of $1,070,000 Crowd SAFE at a $10M valuation cap. It also offers high-value bonus perks, including Stock card VIP subscriptions and stock gifts to its Crowd SAFE investors on Republic, a leading crowdfunding platform.
What makes your startup special? The team's deep connection with individual investors and their understanding of their needs and preferences give them unique insights. The market is a $63B opportunity with powerful technological and demographical forces propelling Stock Card forward.
Trends to Watch
Looming: Railroads say they won't lock out workers as negotiators meet with Labor Secretary Walsh (CNBC)
Strategy Time: Here's How Equity Investors Can Play Ethereum’s Merge (CoinDesk)
Don’t Fight the Fed: Markets Keep Making the Same Mistake About Inflation (The Wall Street Journal)
Kindness: ‘Earth is our only shareholder’: Patagonia’s billionaire family transfers retailer’s entire ownership to climate-change efforts (MarketWatch)
Milestone: Hardware wallets to take similar approach to potential Ethereum hard fork (Cointelegraph)
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