Weekly Secondary Performance Report (3.16.18)

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This past week 16 secondary offerings came to market and IPO Boutique placed BUY ratings on 9 of them. In all, $3.6bn 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 1.9%

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 2.3% at first trade and an average gain of 5.0% at the high of their first-day of trading.

It was another robust week for equity capital markets on the secondary side with a large quantity (7) of block offerings — most with minimal discounts. While IPO Boutique BUY rated offerings fared well at first trade, most deals this week sold off throughout their respective offering days. Eight of 17 deals this week closed below their offering price.

The strongest performer (closing price vs. offering price) of a cash raise greater than $20m was a William Blair underwritten deal, Invuity (IVTY). The offering priced at $3.50 vs. last trade of $4.30 and closed the session at $3.65 for a gain of 4.3%. Other IPO Boutique rated BUY deals that performed well included Moelis & Co. (MC) and Rapid7 (RPD) who closed their offering days’ 2.9% and 2.2% higher, respectively.

The largest offering this week was an $1.03bn offering of Hilton Grand Vacations (HGV). The deal had an element of insider buying but failed to hold its offering price and closed 5.1% below its offering price.

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