IPO Weekly Recap: Market volatility stings IPO market

This past week three IPOs debuted and, for the most part, struggled mightily.

It was a volatile and disappointing week for the IPO market as all three deals that came to market traded under their offering prices and the fourth deal expected was postponed.

Ranger Energy Services (NYSE: RNGR) upsized its offering and priced $1.50 below range. The buy-side dictated pricing was still not satisfactory to the aftermarket as the deal opened $0.50 below the $14.50 offering price. The offering traded near $13.50 for most of its opening session before some high volume right before the close which brought the final trade of its opening session at $14.22 or 1.9% below the offering price.

Zealand Pharma A/S (Nasdaq: ZEAL) priced its offering at $17.87 and opened at $18.12 for a 1.4% gain at first trade. ‘ZEAL’ hit an opening week high of $18.69 but did eventually break the offering price as the deal hit a low of $17.44. Zealand Pharam closed the week at $17.90 or three-cents above the offering price.

An IPO that had been previously postponed, YogaWorks (Nasdaq: YOGA), re-filed with a revised range of $5.50-$6.50….well below the original $12.00-$14.00 range. ‘YOGA’ priced at $5.50 and opened flat. The deal traded as high as $5.85 in the minutes after its debut but then proceeded to break the offering price shortly after and fall even further in its first trading session. YOGA hit a low of $4.16 or 24.3% below the offering price before closing the week at $4.85 or 11.8% below the offering price.

It should be noted that the Contura Energy (NYSE:CTRA) IPO that was expected to debut this week was postponed “due to market conditions”. There is no further information available at this time.

Looking ahead to this week, there are zero deals scheduled. We expect the next few weeks to be slow on the IPO front as bankers gear up for the post Labor day run of deals that are expected on the schedule. However, if this past week was any indication…the secondary offering market is robust as 22 deals priced for total cash raise of $6.74bn this past week.

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