Weekly Secondary Performance Report (9.28.18)

This past week 17 secondary offerings came to market and IPO Boutique placed BUY ratings on 7 of them. The amount of cash raised by underwriters through secondary offerings (spot, blocks, etc.) was $4.67bn.

The average gain of IPO Boutique BUY rated offerings this week at first trade was 1.5%

The average gain of IPO Boutique Neutral rated offerings this week at first trade was 0.3%.

The last 20 IPO Boutique ‘BUY’ rated secondary offerings have produced an average gain of 1.7% at first trade.

The secondary market was again challenging this week as many offerings were under pressure in the premarket before rebounding.

The two largest offerings of the week were CenterPoint Energy ($1.65bn common) and Digital Realty Trust ($965m) and both produced positive results. CenterPoint opened at $27.42 after pricing at $27.25 — a result typical of a utility. The data center REIT, Digital Realty Trust, was trading well under issue in the premarket before rallying upon opening. DLR traded as high as $114.90 versus an issue price of $113 for nice gains on a large offering.

The best performances this week from cash raises greater than $25m were AnaptysBio (ANAP), PetIQ (PETQ) and Nightstar Therapeutics (NITE) with gains of 4.7%, 4.6% and 4.5% at first trade, respectively.

IPO Boutique BUY rated offerings traded well in the aftermarket as the seven deals we rated as “BUY’ finished their sessions at +2.9% on average versus a +1.5% clip at first trade. While this week was challenging from a secondary offering perspective, it proved to have much more successful results versus last week.

There are currently no secondaries on the schedule for next week.