This past week 22 secondary offerings came to market and IPO Boutique placed BUY ratings on 9 of them. In all, $6.75bn was raised by companies in the secondary market this week.
The average gain of IPO Boutique BUY rated offerings this week at first trade was 0.6%
The average gain of IPO Boutique Neutral rated offerings this week at first trade was 0.9%.
The last 20 IPO Boutique ‘BUY’ rated secondary offerings have produced an average gain of 0.73% at first trade and an average gain of 3.02% at the high of their first-day of trading.
The active follow-on offering week was even more difficult with geo-political factors strongly influencing the overall market. Due to the overall uncertainty and the negative aftermarket performance of some offerings, we elected to rate Friday’s offerings as ‘NEUTRAL’ as to follow our conservative principles in a volatile tape.
The best offering this week was a healthcare offering, Dynavax Technologies (Nasdaq: DVAX), underwritten by Cowen and Company, RBC Capital Markets and William Blair. DVAX opened 6.4% higher and traded as high as $1.20 above its $15.00 offering price for a return of 8.0%. IPO Boutique rated a BUY on this offering. The generous $2.20 discount below the last trade of $17.20 by the underwriting team should certainly be noted.
The largest offering this week was a $1.5bn deal from Thermo Fisher Scientific Inc (NYSE: TMO) underwritten by Goldman Sachs & Co., BofA Merrill Lynch and Citigroup. TMO opened 0.4% below the $171.00 offering price but traded better in the aftermarket ultimately hitting a high of $174.10 and closing the session at $173.26 or 1.3% above the offering price. IPO Boutique rated this offering a BUY.
There are currently no secondary offerings on the schedule for the upcoming week.
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