March 28, 2018

By: Tom Zanki

Chinese online entertainer Bilibili Inc., represented by Skadden Arps Slate Meagher & Flom LLP, priced a $483 million initial public offering on Wednesday, the largest of four offerings totaling $828 million that priced since Tuesday night in the busiest week for IPOs since January.

Bilibili’s IPO was joined by a $179 million deal from online educator OneSmart International Education Group Ltd., also advised by Skadden; a $144 million deal by gene therapy biotechnology firm Homology Medicines Inc., advised by Latham & Watkins LLP; and a $22 million deal from OP Bancorp, advised by Buchalter PC.

The deals are among eight set to price by Friday, the most for one week since January. The largest offering, an estimated $2.3 billion IPO by Chinese streamer iQiyi Inc., is scheduled to begin trading Thursday, according to Nasdaq.

Shanghai-based Bilibili on Wednesday priced 42 million shares at $11.50 each, the midpoint of its forecasted range of $10.50 to $12.50. Bilibili, an online platform that allows users to stream Japanese animation, told regulators it plans to spend proceeds on investment in technology, including artificial intelligence and cloud technologies, and on acquiring users and brand promotion.

“We believe China will become the world’s largest online entertainment market in the future and our brand recognition and market leadership among the young generations in China position us well to capture the significant opportunities,” Bilibili said in its registration statement.

Shares of Bilibili dropped 26 cents to close at $11.24 in debut trading on Wednesday.

Shanghai-based OneSmart also priced 16.3 million shares at $11 each on Wednesday, the bottom of its expected range of $11 to $13. The after-school tutoring services provider plans to spend most of its $179 million in proceeds on expanding its network of study centers and increasing course offerings. OneSmart shares fell 20 cents to close trading at $10.80.

Bedford, Massachusetts-based Homology, which is developing a gene therapy platform to treat rare genetic diseases, priced on Tuesday an upsized IPO that raised $144 million. The venture-backed company sold 9 million shares at $16 each, the top of its range of $14 to $16, and says it will use its proceeds to develop product candidates and expand manufacturing capacity.

Homology’s final deal size was increased from original plans to offer 6.7 million shares. Its stock surged 16.6 percent, or $2.66, to close at $18.66 in debut trading on Wednesday.

OP Bancorp, a bank which focuses on servicing Korean Americans, rounded out the latest batch of IPOs with a $22 million capital-raise. The company offered 2 million shares at $11 each on Tuesday, near the top of its anticipated range of $9.50 to $11.50.

Los Angeles-based OP Bancorp, whose stock previously traded over the counter, uplisted onto the Nasdaq market. Its shares rose 11.3 percent, or $1.24, to close at $12.24 on Wednesday.

The four IPOs follow Chinese hotel operator GreenTree Hospitality Group Ltd., represented by Simpson Thacher & Bartlett LLP, which on Monday raised $143 million. GreenTree offered 10.2 million shares at $14 each, below its range of $16 to $18.

A Skadden team led by partner Julie Gao advised Bilibili and OneSmart on their IPOs.

A Latham & Watkins team led by partners Peter Handrinos and Wesley Holmes advised Homology.

Buchalter shareholder Mark Bonenfant advised OP Bancorp.

Morgan Stanley, Bank of America Merrill Lynch and J.P. Morgan Chase and Co. are underwriters for Bilibili. They are advised by a Latham & Watkins team led by partner Allen Wang and counsel Zheng Wang.

Morgan Stanley, Deutsche Bank AG and UBS Investment Bank are underwriters for OneSmart. They are advised by a Simpson Thacher team led by partners Chris K.H. Lin and Daniel Fertig.

Bank of America Merrill Lynch, Cowen & Co. and Evercore ISI are underwriters for Homology. They are advised by a Shearman & Sterling LLP team led by partner Ilir Mujalovic.

Keefe Bruyette & Woods Inc. is underwriter for OP Bancorp. The investment bank is represented by a Sheppard Mullin Richter & Hampton LLP team led by partner Joshua Dean.