IPOBoutique Brief 2.10.2015 – Retaining the Pop

Coupons.Com went public on March 7 to very strong public demand. $COUP priced 10.5 million shares at $16.00 and opened 70% higher with a first trade of $27.15. The stock’s intra-day, $33.00, high happened on day one.By early August, the deal was trading below its offering price and on Monday the company reported dismal earnings which has sent the stock more tumbling by more than 30%.

Instant sell-offs among new issues who have seen high demand has been common practice. See the likes of Castlight Health (Nasdaq: CSLT), Wayfair (NYSE: W) or even some recent ones like Freshpet (Nasdaq: FRPT) &  Shake Shack (NYSE: SHAK).

By the way, Shake Shack was handed a $21 price target as recently as Monday.

Longbow’s Alton Stump initiates Shake Shack (SHAK) with Underperform and a dismal $21/sh PT this morning

Investors find new issues enticing because of the large volatility. Certain IPOs seem to catch fire (see GoPro (Nasdaq: GPRO) & Arista Networks (NASDAQ: ANET)) and head to the moon.

“I think we see increased volatility in the aftermarket due to underwriters creating some very aggressive pricings as well as investors thirst for ‘fast-money’,” senior managing partner at IPOBoutique.Com Scott Sweet said.

Inovalon Increases Range

Inovalon Holdings (Nasdaq: INOV) increased its range in a S-1 Amendment on Tuesday morning. The deal’s range has increased from $21-$24 to $24-$26. That would be a cash raise increase from $521.7 million to $555 million, or 6.3%, if the offering was priced at the mid-point of the range.

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