Weekly Secondary Review: 10/30/17 – 11/3/17

You can Subscribe to IPO Boutique’s Secondary Only Service by clicking here:

This past week 6 secondary offerings came to market and IPO Boutique placed BUY ratings on 2 of them. In all, just $1.16bn 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 1.5%

The average gain of IPO Boutique Neutral rated offerings this week at first trade was -1.6%.

The last 20 IPO Boutique ‘BUY’ rated secondary offerings have produced an average gain of 2.60% at first trade and an average gain of 6.66% at the high of their first-day of trading.

The follow-on offering market was extremely light as large caps were reporting earnings as well as a lot of attention being given to the IPO market. The best deal this week was the $275m cash raise from Constellium N.V. (CSTM) — a deal underwritten by a litany of top tier names: Credit Suisse, Deutsche Bank, BofA Merrill Lynch, BNP PARIBAS, Goldman Sachs, J.P. Morgan. ‘CSTM’ opened the highest of the six deals this week with a 4.1% pop above the offering price. IPO Boutique rated this offering a BUY.

The worst performing deal was Intellia Therapeutics (NTLA) underwritten by Credit Suisse, Jefferies, Leerink Partners. After recent positive news, the company cashed in with a follow-on offering in which investors severely punished. NTLA launched its offering with a closing stock price of $31.12 and after a single day of marketing…the deal priced at $24.00. The $1.47 discount to last trade was not enough as the deal opened at $22.50 and closed the session at $21.00 for a 12.5% loss against the offering price. We received very late information about this offering and elected to downgrade it to a Neutral at the last minute. We apologize for not being able to confirm this information sooner as mixed messages were coming in from the underwriter in the afternoon prior to pricing.

There are currently two secondary offering being marketed for the upcoming week, Pro Petro Holdings (PUMP) and AMERI Holdings (AMRH).