Caliber and AmeriHome Delay IPOs, Galecto IPO Raises $85 Million
Caliber Home Loans and AmeriHome have delayed their IPOs due to a big drop in the markets. However, biotech company Galecto is moving forward with its IPO.
Oct. 30 2020, Updated 10:58 a.m. ET
In response to current fluctuations in the markets, Caliber Home Loans and AmeriHome have decided to delay their IPOs, according to Housing Wire.
Caliber Home Loans and AmeriHome IPOs
Earlier in October, Caliber filed for its IPO. About 23 million shares were to be sold at $14–$16 per share. AmeriHome did the same with 14.7 million shares at $16–$18 per share. According to Bloomberg, both of the companies were supposed to list their price offerings after the market closed on Oct. 28.
On the same day, Business Insider reported that the Dow Jones Industrial Average dropped by 3.4 percent or 943 points and called the decline "worst single-day drop since June 11."
The drop in the markets is reportedly due to surging coronavirus cases in Europe. France has 50,000 new cases, according to Reuters. Germany agreed to close bars and restaurants in November and place limits on other kinds of businesses to combat the COVID-19 pandemic.
Additional venues that usually draw larger crowds like theaters, concert halls, sports facilities, and trade fairs will also be closing down. Other countries like Italy and Spain are taking similar measures to combat the COVID-19 pandemic.
Galecto's IPO could raise $85 million
Despite what's going on with the markets, biotechnology company Galecto announced its IPO on Oct. 29. The company is offering 5,666,667 shares at $15 per share, according to Globe Newswire. The stock has already started trading on Nasdaq under the ticker symbol "GLTO."
The gross proceeds from Galecto's IPO are expected to be about $85 million before the expected closing date on Nov. 2. However, the company has also offered underwriters a 30-day window to buy up to 850,000 more shares at the IPO price.
When is Caliber's new IPO date?
Initially, Caliber was going to offer its shares in an IPO this week. Based on how uncertain things are right now, a new date hasn't been confirmed yet. However, the company will be trading on the NYSE under the ticker symbol "HOMS."
"Caliber will continue to evaluate the timing for the proposed offering as market conditions develop," Caliber said in a press release.
When is AmeriHome's new IPO date?
Unfortunately, the same is true for AmeriHome. There hasn't been any news about a new IPO date. The mortgage company will be trading on the NYSE under the ticker symbol "AHM."
Multiple news outlets have stated that AmeriHome representatives have decided not to comment on the delay. The company might offer another date in the future or it might wait and see what happens with the COVID-19 pandemic.
What's on the IPO calendar for the rest of 2020?
Plenty of companies have continued to file for IPOs and join the stock market this year despite everything going on with the coronavirus pandemic. The rest of the year looks like it's slowing down. Right now, there aren't plans for more IPOs, according to Nasdaq.
