Weekly Secondary Performance (6.8.18)

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This past week 18 secondary offerings came to market in a very busy week and IPO Boutique placed BUY ratings on 12 of them. In all, $5.32bn 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 4.8%

The average gain of IPO Boutique Neutral rated offerings this week at first trade was 0.8%.

The last 20 IPO Boutique ‘BUY’ rated secondary offerings have produced an average gain of 3.8% at first trade and an average gain of 6.3% at the high of their first-day of trading. Sixteen of the 18 offerings this week opened above the offering price including all 12 that IPO Boutique rated as a BUY. Only three of the 18 offerings this week closed below their issue price on their debut day.

After a previously quiet week of secondaries, this week bounced back with 18 offerings for a total of $4.3bn raised by equity capital markets in secondaries on one day alone. It was a mix of marketed deals and overnight blocks with 13 of the 18 deals pricing for a Thursday (6.7.18) debut.

The best deals of the week at first trade were Mirati Therapeutics (MRTX), Viking Therapeutics (VKTX) and ADMA Biologics (ADMA) with gains of 12.7%, 10.9% and 9.8% at first trade, respectively. Mirati Therapeutics traded the best this week and closed its session +18.4% vs. the offering price marking a win for the underwriting team of Cowen, Barclays and SunTrust Robinson.

While many offerings performed well this week, there were a pair of biotech deals that struggled, Deciphera Pharmaceuticals (DCPH) and Madrigal Pharmaceuticals (MDGL). DCPH upsized its offering and did open with a 0.4% gain at first trade but once it broke the offering price…the deal struggled badly all the way until the close finishing -10.3% and showing how dangerous high-flying biotech deals can be if broken. MDGL traded up more than 200-points (or 200%) in the previous five sessions prior to its offering and after a 1.2% gain at first trade…the deal closed at $281.06 or 7.8% below its $305 issue price.

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