A couple of moonshots skyrocketed off last week’s IPO calendar. That leads to the question: Could there be another in the works?
By now, everybody knows Aduro Biotech (ADRO) and Etsy (ETSY) had breathtaking opening-day performances.
Aduro, a clinical-stage immuno-oncology company, priced its IPO of 7 million shares at $17 each, UP from 5 million shares at $14 to $16 each. The IPO opened Wednesday, April 15, at $32 and closed at its high of $42 per share, UP 147.1 percent from its IPO price.
That was the largest opening-day gain of 2015.
Etsy, an online marketplace for handmade, vintage and offbeat goods, priced its IPO of 16.7 million shares at $16 each, on the high end of its $14 to $16 per share price range. The IPO opened Wednesday, April 15, at $31, sold as high as $35.74, and closed at $30 per share, UP 87.5 percent from its IPO price.
That was the fourth-largest opening-day gain among IPOs in 2015.
Burgers And Genes
Interestingly enough, the year’s other two opening-day moonshots came on the same day. Both were priced on the evening of Jan. 29 and traded the following morning on Jan. 30, 2015:
Shake Shack (SHAK), a modern “roadside” burger stand serving a classic American menu of premium burgers, hot dogs, crinkle-cut fries, shakes, frozen custard, beer and wine, priced its IPO of 5 million shares at $21 each, UP from its initial terms of 5 million shares at $14 to $16 each. The IPO opened at $47, sold as high as $52.50, and closed its opening day at $45.90 per share, UP 118.5 percent from its initial public offering price.
That was the second-largest opening-day gain of 2015.
Fast forward to the present: Shake Shack closed Friday, April 17, 2015, at $61.67, UP 193.7 percent from its IPO price and UP 34.4 percent from its opening-day close.
Note: About eight securities analysts rate Shake Shack a “HOLD” with a median price target of $38 per share (yes – $38), according to reliable sources.
Spark Therapeutics (ONCE), a gene therapy company engaged in developing one-time, life-altering gene therapy treatments to transform the lives of patients and re-imagine the treatment of debilitating diseases, priced its IPO of 7 million shares at $23 each, UP from 5.5 million shares at $15 to $17 each. The IPO opened at $45.10, sold as high as $51.90, and closed its opening day at $50 per share, UP 117.4 percent from its initial public offering price.
That was 2015’s third-largest opening-day gain.
Fast forward to the present: Spark Therapeutics closed Friday, April 17, 2015, at $69.97, UP 204.2 percent from its IPO price, and UP 39.9 percent from its opening-day close.
Note: About five securities analysts rate Spark Therapeutics a “BUY” with a median price target of $71 per share.
All About Apigee
This brings us to this week, with three IPOs looking to raise about $426 million. And what’s a calendar without an “IPO of Interest” to attract attention?
Apigee (APIC – proposed) is a San Jose, California-based provider of analytics software solutions that let businesses design, deploy, and scale APIs (application programming interfaces) as a connection layer between their core IT systems and data and the applications with which their customers, partners, employees and other users engage with their business. That’s a mouthful. What does it mean? The San Jose Mercury News put it this way in an article published about a month ago: APIs are “the programs that connect applications on the Internet. For instance, when someone uses Yelp to look for the closest Italian restaurant, APIs are powering that experience.”
Apigee’s slogan is simple: Make every business a digital business. Its customers include BBC Worldwide, the commercial arm of the British Broadcasting Corp., as well as Burberry, the British fashion brand, and across the pond, AT&T, Dell, eBay and Gogo, a provider of in-flight Internet, text messaging and other communication services.
For the three months ended Jan. 31, 2015, Apigee reported an operating loss of $11 million on revenues of $17 million versus an operating loss of $15.9 million on revenues of $13.2 million for the same period a year ago.
(For more information, please click here: Apigee)
A Self-Storage Empire
Then the IPO page turns this week to the REITs:
National Storage Affiliates Trust (NSA – proposed) is a Greenwood Village, Colorado-based real estate investment trust focusing on the ownership, operation and acquisition of self-storage properties located within the top 100 Metropolitan Statistical Areas throughout the United States. According to the 2014 Self-Storage Almanac, National Storage was the sixth-largest owner and operator of self-storage properties in the United States, based on number of properties, units and rentable square footage.
Note: National Storage has made quarterly cash distributions of 19 cents per share over the last four quarters. At this rate, the annual yield would be about 4.75 percent based on the mid-point of its price range.
(For more information, please click here: National Storage Affiliates Trust)
The third IPO on this week’s calendar is a small-cap deal, Viking Therapeutics (VKTX – proposed), looking to raise only $20 million.
Looking into next week, the IPO calendar has only one small-cap offering. Nevertheless, the calendar has been known to fill up quickly on Monday mornings.
Stay tuned.
Disclosure: Neither the author nor anyone else on the IPOScoop.com staff has a position in any stocks mentioned, nor do we trade or invest in IPOs. The author and IPOScoop.com staff do not issue advice, recommendations or opinions.