This past week eight IPOs debuted, zero updated terms and, at the time of this writing, ten new deals were filed. You can check out our latest report on the IPO pipeline by clicking here.
Price sensitivity and a bit of pushback was the sentiment coming from the IPO market as four deals priced below range and two were postponed due to market conditions.
But to start with the positive…the two in-demand technology offerings came to market successfully.
SailPoint Technologies Holdings (SAIL) and SendGrid Inc (SEND) each priced above range and they opened with 24.2% and 15.9% gains at first trade, respectively.
After the previous week saw a trio of bank IPOs (MCB, CBTX, MRBK) come to market…this past week’s lone bank deal, Sterling Bancorp (SBT), upsized its offering by 50% and priced at the low-end of its $12-$14 range. ‘SBT’ opened with a first trade of $12.35 and hit an opening session high of $12.60. This, once again, showed the consistency in this niche in the financial sector and the underwriters who have run the books on these offerings.
Arsanis Inc (ASNS) certainly appeared to please the buy-side after pricing $5.00 below the $15-$17 range and seeing a 30% premium at first trade. The bio traded as high $14.60 in its opening week and closed Friday’s session with a last trade of $13.93 or 39.3% higher marking the deal the best performer of the week.
The other healthcare deal, scPharmaceuticals Inc (SCPH), priced at $14.00, or at the low-end of its range, and opened with a $0.25 premium. SCPH traded as high as $14.94 during its debut day but did break its offering price toward the end of its opening session before closing at $14.10.
Online retailer Stitch Fix (SFIX) cut its size from 10.0mm to 8.0mm shares and priced $3.00 below the $18-$20 range. SFIX was fine to start, opening with a 12.7% premium above the offering price and hit a first day high of $18.53 (23.5% above offering price). SFIX, however, ended up breaking its offering price on day one and closed Friday’s session with a $15.04 final trade.
Jianpu Technology (JT) and Bluegreen Vacations (BXG) each had uninspiring debuts. JT priced $0.50 below the $8.50-$10.50 range and opened with an $8.25 first trade. JT closed the week at $7.20 or 10% below its offering price. Bluegreen Vacations’ (BXG) $2.00 discount below the $16-18 range was not enough to produce a premium at the open. BXG opened at $12.55 or 10.4% in the red and closed the session at $13.00 or 7.1% below the offering price.
It should be noted that two deals that were on the schedule for this week, Molino Canuelas S.A.C.I.F.I.A (MOLC) and MPM Holdings (MPMH) did not come as scheduled and were postponed due to market conditions. There is no further information available at this time.
Looking ahead to this week…ECM activity will take a break for the Thanksgiving Holiday. It is a much needed break as November’s 27 IPOs that have come to market is the most in a single month beating both April and June (18 each).
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