IPO Weekly Recap: Mixed bag as airport concessions companies struggle in debut

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The IPO market had a choppy week as seven offerings came to market with a mixed bag of success. The seven offerings in total raised $3.2bn in cash which surpasses the entire total in February 2017. Thus far in 2018…there have been 20 offerings raised $9.9bn in cash — and this does not include SPACs.

FTS International (FTSI) upsized its offering and priced at the top of the $15-$18 range. And opened with a $1.00 premium for a 5.4% gain at first trade.

Healthcare deals continued to fare well out of the gates with Sol-Gel Technologies (SLGL) upsizing its offering from 5.0mm to 6.25mm shares, pricing at the midpoint of the range ($12.00), and opening 28% above the offering price with a $15.33 first trade. SLGL did cool off and closed its opening session at $13.64 or 13.7% above the offering price.

A second straight REIT IPO came to market successfully as VICI Properties (VICI) raised $1.21bn with an upsized offering (60.5mm at $20.00). VICI gave IPO investors a healthy premium (given the sector) with a $21.08 first trade — 5.4% above the offering price.

Both airport concessions company coming to market struggled. Hudson Ltd (HUD) priced at the low-end of the range, $19.00, and opened with a first trade of $17.95 for a loss of 5.5% at first trade. Corporacion America Airport (CAAP) priced $2.00 below range, $17.00 and opened flat. CAAP broke the offering price within minutes of hitting the public market.

Central Puerto S.A. (CEPU) downsized its offering and priced $1.00 below the $17.50-$21.50 range. The deal opened flat and broke its offering price within minutes of trading.

The Roth Capital led One Stop Systems (OSS) IPO fared well at first trade with an 11.0% premium above a $5.00 below-range pricing. OSS did sell-off in its opening session and closed at $4.88 or 2.4% below the issue price.