Weekly Secondary Performance Recap (Ending 2.23.18)

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This past week 10 secondary offerings came to market and IPO Boutique placed BUY ratings on 6 of them. In all, $1.55bn 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 2.8%

The average gain of IPO Boutique Neutral rated offerings this week at first trade was 2.4%.

The last 20 IPO Boutique ‘BUY’ rated secondary offerings have produced an average gain of 2.64% at first trade and an average gain of 7.8% at the high of their first-day of trading.

It was a relatively uneventful week for the secondary market as quantity was limited due to the holiday-shortened week. The largest cash raise this week was Shopify’s (SHOP) $657.6m cash raise by pricing 4.8m shares at $137.00. The pricing was a 4.04% discount to the $142.78 last trade at launch and the deal opened down -0.2% and traded poorly — finishing the day -3.1%.

Healthcare offerings enjoyed solid debuts but most sold off almost immediately. Ascendis Pharma A/S (ASND), Aimmune Therapeutics (AIMT) and Dova Pharmaceuticals (DOVA) opened with gains of 7.0%, 8.4% and 3.1%. The same three closed their offering days’ at 4.3%, -0.1% and 1.0% vs. their respective offering prices.

The strongest performer (closing price vs. offering price) of a cash raise greater than $20m was a SunTrust Robinson led deal, Ring Energy (REI), which finished +4.6% vs. its $14.00 offering price. It should be noted that Clearside Combustion (CLIR) had a strong debut with National Securities underwriting the $11.3m offering. The deal opened +6.7% and closed +9.8% vs. its offering price and thus skewing the average of the Neutral rated deals this week.

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