It was a third consecutive positive week for the IPO market as four of five initial public offerings came to market with gains of 24.8% at first trade on average. The strength of the IPO market was evident in our ratings as we went out with a trio of ‘4’ rated IPOs.
The deals of the week were Qudian (NYSE: QD) and MongoDB (Nasdaq:MDB) which opened with premiums of $10.35 and $9.00 after each deal priced above their respective ranges. Both deals were massively oversubscribed and both traded with exceedingly high volume on day one but did a decent job of holding their gains in the aftermarket. Qudian closed the week at $33.00 or 38% above its offering price and MongoDB finished Friday’s session with a final trade of $30.68 for a 28% gain.
RISE Education Cayman Limited (Nasdaq: REDU) priced $0.50 above the $14.00 offering price and opened at $16.00 for a 10.3% gain at first trade. ‘REDU’ traded as high as $17.86 in its first day for a gain of 23.2% at top-tick.
Sea Limited (Nasdaq: SE) upsized its already large offering by 20% and priced at $15.00 or $1.00 above the range. The deal opened at $16.25 but quickly sold off and broke the offering price within minutes. We heard from our sources that there could possibly be ‘fluff’ and or ‘fast money’ associated with this offering and it proved to be placed in weak hands as ‘SE’ hit a first day low of $14.00. The deal did stabilize and closed its opening session in the black but to see a deal of this size break so quickly with Goldman Sachs & Morgan Stanley leading the book is a bit troublesome given the upsize and pricing as well as the buoyant IPO market.
It should be noted that one IPO that was scheduled to debut did not, LiveXLive Media (LXL:NYSE) and is now classified as Day-to-Day status by the lead left underwriter.
Looking ahead to this week, there are six deals on the schedule
National Vision Holdings, Inc. (EYE) is one of the largest and fastest growing optical retailers in the United States and a leader in the attractive value segment of the U.S. optical retail industry. IPO Preview Here
Forescout Technologies (FSCT) has pioneered an agentless approach to network security to protect organizations against the emerging threats that exploit the billions of devices connected to organizations’ networks. IPO Preview Here
Merchant Bancorp (MBIN) is a diversified bank holding company headquartered in Carmel, Indiana and registered under the Bank Holding Company Act of 1956, as amended. IPO Preview Here
Nexa Resources (NEXA) is an age-scale, low-cost integrated zinc producer with over 60 years of experience developing and operating mining assets in Latin America. IPO Preview Here
BP Midstream Partners LP (BPMP) is a fee-based, growth-oriented master limited partnership recently formed by BP Pipelines, an indirect wholly owned subsidiary of BP, to own, operate, develop and acquire pipelines and other midstream assets. IPO Preview Here
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