This past week four IPOs debuted, one updated terms and ten new deals were filed.
The week’s high profile deal, Ferrari N.V. (NYSE: RACE), was the only IPO of the four at opening to debut this week- that did not disappoint. Ferrari priced a full size deal at the high end of the range, $52, and opened with a 15% premium with a $60 first trade. Our sources indicated that this was a ‘global-book’ and that the top 25 accounts in the ‘RACE’ deal received 65% of the offering. Despite this, Ferrari traded lower than its opening trade and closed the week at $56.38 or 8.4% above the offering price. Multi Packaging Solutions Limited (Nasdaq: MPSX) opened $0.10 below the heavily revised $13.00 offering price but fared well in the aftermarket as it traded higher on day one and two. ‘MPSX’ closed the week at $15.86 or 22% above the offering price.
The other two deals this week were disappointments. American Farmland Company (NYSE: AFCO) re-worked its deal and priced at $8.00 only to open 12.5% lower with a $7.00 first trade. ‘AFCO’ closed its opening week at $7.52. The lone biotech deal of the week, Dimension Therapeutics (Nasdaq: DMTX), opened $0.40 below the $13.00 offering price and traded even worse in the aftermarket. ‘DMTX’ closed its first day of trading at $10.80 or 17% below the offering price. Dimension Therapeutics did rally on its second day of public trading and closed the week at $12.25 or $0.75 below the offering price. The performance of this biotech will not make things easier on the slew of healthcare related deals that await in the IPO pipeline.
It should be noted that a deal from two weeks ago that has been in day-to-day status, Adesto Technologies (NASDAQ: IOTS), re-worked its terms this past week and the underwriter states that this company is now scheduled for a ‘week of 10/26’ debut.
Looking ahead to this week, there is just a single IPO on the schedule, MyoKardia (Nasdaq: MYOK), ….
Please check your emails early and often. We may upgrade or downgrade an IPO and or secondary –sometimes with not as much notice as we would like to give. If you have interest in IPOs do NOT delay your IOI’s (hopefully they are already in)…you can always cancel them. We will keep you posted if and as when…we have anything pertinent to add. It should be noted that we ‘cleaned’ up our IPO pipeline by clearing out deals that have been inactive for six months or more. With that being said, the current number of “active” IPOs in the pipeline as of 10/23/15 is 91. Good luck trading!
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