Weekly Secondary Performance Recap (3.2.18)

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This past week 17 secondary offerings came to market and IPO Boutique placed BUY ratings on 6 of them. In all, $5.4bn 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 1.3%

The average gain of IPO Boutique Neutral rated offerings this week at first trade was -0.4%.

The last 20 IPO Boutique ‘BUY’ rated secondary offerings have produced an average gain of 1.75% at first trade and an average gain of 6.4% at the high of their first-day of trading.

While quantity was not immense this week, there were a handful of $1bn+ block overnight offerings that came to market. General Motors (GM), GoDaddy (GDDY) and Norwegian Cruise Line Holdings (NCLH) brought blocks of $1.59bn, $1.09bn and $1.01bn, respectively. The only one of the three to open or close its session positive was the NCLH transaction with gains of 0.5% and 1.6% at open and close versus its offering price marking a rare win for a Morgan Stanley block.

The strongest performer (closing price vs. offering price) of a cash raise greater than $20m was a deal that launched late (6:45pm EST official Launch) but certainly had a strong book committed to the deal — Endocyte (ECYT). ECYT, underwritten by Jefferies, Deutsche Bank and Wells Fargo, priced at last trade, opened +8.6% and closed the session 41.2% above its offering price. This was the best performing offering of a deal that raised greater than $20m since Mirati Therapeutics (MRTX) on November 16, 2017 when that offering closed 46.2% above the offering price.

Other strong performers at first trade this week included Atara Biotherapeutics (ATRA), Limelight Network (LLNW) and Hamilton Lane (HLNE) with opening trade of +4.9%, +4.8% and +4.1% at first trade, respectively.

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