Weekly Secondary Performance: Risk on Rewarded for secondary investors

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This past week 12 secondary offerings came to market in this holiday shortened week- and IPO Boutique placed BUY ratings on 7 of them. In all, $3.5bn 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 2.9%

The average gain of IPO Boutique Neutral rated offerings this week at first trade was 1.5%.

The last 20 IPO Boutique ‘BUY’ rated secondary offerings have produced an average gain of 2.7% at first trade and an average gain of 6.3% at the high of their first-day of trading.

There were two $1bn+ size offerings this week, General Mills (GIS) and Dominion Energy (D), and both opened trading below the offering price. GIS, however, traded better during its offering day hitting a high of $45.03 vs. its $44.00 offering price. While ‘D’ opened -1.3%…it did trade above its $67.85 offering price and closed at $67.79.

The best performing offerings this week were from the healthcare sector. Macrogenics (MGNX), PTC Therapeutics (PTCT) and Heron Therapeutics (HRTX) opened with premiums of 9.2%, 8.2% and 3.8%, respectively. OP Bancorp (OPBK), an uplisting from the OTC Pink Sheets, provided a 3.8% premium at first trade…marking another win for Keefe Bruyette & Woods.

On the other hand, Morgan Stanley continues to struggle. Not only did all four of their IPOs break and trade under their offering prices, their largest block offering, Bright Horizons Family Solutions (BFAM), closed its $475m offering -4.7%.

There are currently no secondary offerings on the schedule for next week.