IPO Weekly Recap – 2.13.2015

This past week five IPOs debuted, one updated terms and seven new deals filed.

It was another difficult week for the IPO market as two of the seven new deals planning to come to market were postponed and many others who held-over from prior weeks’ failed to come to market. Among the five who made debuts, four issues traded at or below their respective offering prices at some point in their opening week. The deal in the highest demand, Inovalon Holdings (Nasdaq: INOV), was more than 20x over-subscribed and priced ($27.00) one dollar above an already upwardly revised range. ‘INOV’ opened 23% higher with a first trade of $33.16. However, the deal immediately sold off, closed day one flat, and opened its second session below the offering price before rebounding to a first-week close of $29.00—7% above the IPO price. We wrote a short nugget focusing on a potential reason for the instant-collapse of Inovalon Holdings, despite the strong demand, on our new blog and encourage you to take a look at the story. Another deal in strong demand, Invitae Corporation (Nasdaq: NVTA), fared well but maybe not as strong as our channel checks indicated. ‘NVTA’ upsized and priced ($16.00) $1.00 above the range. The deal opened at $17.50 bringing in a 9% return above the offering price. A smaller financial sector deal, Avenue Financial Holdings (NYSE: AVNU), priced ($11.00) at the low-end of the range and opened 30% higher with a $14.30 print at first trade. The deal did sell off in its opening week, however, ‘AVNU’ closed above the IPO price with an $11.84 close.

It should be noted that there were two deals on the schedule for this week that did not price and were postponed: Sol-Wind Renewable Power LP (NYSE: SLWD) and Autogenomics (Nasdaq: AGMX). In addition, the AltheaDx (Nasdaq: IDGX) deal was postponed while Inotek Pharmaceuticals (Nasdaq: ITEK) and Infraredx (Nasdaq: REDX) are still to be considered ‘day-to-day’ by the underwriters. Additionally, a holdover, Check-Cap (Nasdaq: CHEK), is still scheduled for a February 19th debut. Please refer to past week’s IPO report as well as past advisories for more information about the previously mentioned deals.

Currently, there are no new deals on the schedule for this coming week. It will be a shortened trading week overall as the stock market is closed on Monday for President’s Day. We have heard from our sources that the IPO market will likely heat up as many filings with terms are expected in the coming weeks. Some deals that could potentially come are GoDaddy and Party City. We wrote another note in our blog about the upcoming IPO scene for those interested.