Lackluster Week: IPO market hits a rough patch with postponements, underperformance

Root Inc (ROOT) priced 26.8mm shares (upsized from 24.2mm) at $27.00 ($2 above the range) and opened at $26.00 for a loss of 3.7% at first trade. 

MediaAlpha, Inc. (MAX) priced a full-size deal, 9.25mm shares, at the midpoint of the range, $19.00, and opened at $23.00 for a gain of 21.1% at first trade. MAX was the best trader of this week’s deals as this new issue hit a high of $38.29 for a gain of 101.5% at its high versus the $19.00 issue price.

Leslie’s Inc (LESL) priced a full-size deal, 40.0mm shares, at $17.00 ($1 above the range) and opened at $20.60 for a gain of 21.2% at first trade. LESL closed its opening session at $21.70 for a gain of 27.6%.

Lufax Holding Ltd (LU) priced a full-size deal, 175.0mm ADSs, at the high-end of the range, $13.50, and opened at $11.60 for a loss 14.1% at first trade.

Allegro MicroSystems, Inc. (ALGM) priced a full-size deal, 25.0mm shares, at the high-end of the range, $14.00,  and opened at $19.40 for a gain of 38.6% at first trade.

Atea Pharmaceuticals, Inc. (AVIR) priced 12.5mm shares (upsized from 11.0mm shares) at the high-end of the range,$24.00, and opened at $27.02 for a gain of 12.6% at first trade.

Galecto, Inc. (GLTO) priced a full-size deal, 5.66mm shares, at the midpoint of the range, $15.00, and opened flat at $15.00.  GLTO did trade to a weekly high-of $17.11 but closed its opening session flat and its subsequent session saw its stock price go well-below the $15.00 issue price.

SQZ Biotechnologies Company (SQZ) priced a full-size deal, 4.4mm shares, at the low-end of the range, $16.00, and opened at $15.05 for a loss of 5.9% at first trade. SQZ traded poorly in its opening session and failed to regain its issue price.

Biodesix Inc (BDSX) priced 4.0mm shares (slightly downsized) at the midpoint of the range, $18.00, and opened at $13.59 for a loss of 24.6% at first trade. BDSX hit a low of $11.85 for a loss of 34.2% at its bottom print.

Gatos Silver Inc (GATO) priced 21.4mm shares (upsized from 18.8mm) at $7.00 (low-end of the range) and opened at $6.50 for a loss of 7.1% at first trade.

It should be noted that three IPOs elected to postpone their IPOs due to market conditions: Caliber Home Loans Inc (HOMS), AmeriHome Inc (AHM) and Mavenir plc (MVNR). 

Looking ahead to this week, there are zero IPOs currently on the schedule which is not out of the ordinary given election day is on Tuesday in the United States.