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IPO Boutique rated 18 IPOs with either a ‘4’ or ‘5’ rating in the second quarter of 2019 and those deals produced a return of 53.5% above the offering price at first trade, on average. Additionally, IPO Boutique rated 22 of the 60 issues with a ‘3’ rating and those deals produced a 14.2% return at first trade. There were 19 ‘2’ rated deals which averaged a 4.5% return at first trade. This showcases the value that IPO Boutique has to not only make money with the “strong deals”…but to avoid losing money with the weaker offerings. Our ratings provide a forecast on how strong the pre-IPO demand is.

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2Q RECAP

A total of 60 IPOs came to market in 2Q 2019 raising $25.0bn. Ironically, this was the same amount (60) that came in the 2Q of 2018 but only $12.8bn was raised in the year-ago period. The quarter included what will likely be the largest IPO of the year, Uber Technologies (UBER), which saw its $8.1bn cash raise open $3.00 below the $45.00 issue price. Aside from that offering, the second quarter was a banner three-month stretch.

19 of the 60 IPOs opened more than 30% above their issue price and many of them had outsized aftermarket gains. The “wildest” trader of them all was the Beyond Meat Inc (BYND) offering which opened 84.0% above its $25.00 issue price but traded as high as $201.88 in its short time as a public company. Five other companies are currently trading more than 100% above their issue price (as of 7.5.19) which includes Zoom Video (ZM), Turning Point Therapeutics (TPTX), Cortexyme (CRTX), Silk Road Medical (SILK) and Revolve Group (RVLV).

A total of 16 IPOs priced above their original ranges and 10 priced below range. Five IPOs raised more than $1bn in cash including previously mentioned Uber Technologies (UBER), TradeWeb Markets (TW), Pinterest Inc (PINS), Avantor Inc (AVTR) and Chewy Inc (CHWY). Those five IPOs averaged a 22.4% return at first trade.

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Biotech bingo was a theme in the 2nd quarter as 19 companies went public in the sector (32% of total in quarter) at an average gain of 18.5% at first trade. It should be noted that 9 of these 19 are now trading underneath their offering price.

2Q 2019 IPO REVIEW: Outsized aftermarket gains!