Weekly Secondary Performance (6.15.18)

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This past week 22 secondary offerings came to market in a very busy week and IPO Boutique placed BUY ratings on 11 of them. In all, $4.6bn was raised by companies in the secondary market this week.

The average gain of IPO Boutique BUY rated offerings this week at first trade was 1.8%

The average gain of IPO Boutique Neutral rated offerings this week at first trade was 0.7%.

The last 20 IPO Boutique ‘BUY’ rated secondary offerings have produced an average gain of 3.4% at first trade and an average gain of 6.4% at the high of their first-day of trading.

It was a much more “difficult” week for secondary offerings than the previous week. Last week, 16 of the 18 offerings opened above the offering price…compared to 16 of the 23 that opened above this week. The average gain at first trade for all 23 deals issued this week was 1.2% above the offering price and the average close vs. issue price was 2.2% representing healthy aftermarket buying.

The best deals of the week at first trade were Kadmon Holdings (KDMN), Asure Software (ASUR) and Intelsat S.A. (I) with gains of 6.1%, 4.3% and 3.7%, respectively, at first trade. The best performing deals in terms of close vs. issue price were Aqua Metals (AQMS), Kadmon Holdings (KDMN) and Mackinac Financial (MFNC) with returns of 15.8%, 11.5% and 8.7% as of the close of their issue day.

The secondary offering market continues to be one where active syndicate investors can make quality returns if navigated properly.

There are currently zero secondary offerings on the schedule for next week.