The IPO Buzz: Alibaba and China’s IPO Wave

JD.com, China’s largest online direct sales company, set pricing terms late Friday afternoon for its IPO, looking to raise as much as $1.6 billion. That would give the company a market value of almost $25 billion. JD.com jumped onto next week’s calendar.
 
Here’s the story behind the buzz: The Chinese aren’t coming. They’ve arrived.
 
All Aboard the IPO Orient Express  
Guangshen Railway (GSH) was the first IPO from The Peoples’ Republic of China to make its debut in the U.S. capital markets. On May 12, 1996, Guangshen priced its IPO at $19 per share and it closed its opening day at $20.25. Since then, its stock has been on a roller coaster riding from a low of $4.25 on Aug. 11, 1998, to a high of $45.59 on Sept. 28, 2007. Guangshen closed at $18.56 on Friday, May 9, 2014.
 
Since that beginning in May 1996, about 176 China/Hong Kong-based companies have populated the U.S. IPO calendar.
 
In 1997, four more IPOs from China/Hong Kong came to market. In 1998, another four were priced and another four in 1999.
 
On Oct. 16, 2007, the Shanghai Index hit its all-time closing high of 6,092.06. On May 9, 2014, the Shanghai Index ended at 2,011.13, DOWN 67 percent from its record high. A total of 31 IPOs from China/Hong Kong made their debuts on Wall Street in 2007. The traffic tapered off in the next two years and jumped to 39 IPOs in 2010. Eight came to market in 2013.
 
This year’s U.S. IPO calendar has produced seven from China/Hong Kong. Their 2014 report card doesn’t exactly get a gold star, but the underlying stock market indexes don’t either. Five of the seven closed on Friday, May 9, as winners. The average gain for all seven was 2.61 percent from their initial offering prices. Still, that’s much better than the stock market.
 
The NASDAQ Composite Index closed on Friday at 4,071.87, DOWN 2.51 percent for the year. The Shanghai Index closed at 2,011.13, DOWN 4.96 percent for the year. Hong Kong’s Hang Seng Index closed at 21,862.99, DOWN 6.19 percent for the year.
 
Now bring on Alibaba.
 
Beauty and Beijing
This brings us to this week, with seven deals billed as IPOs. Jumei, a Chinese online retailer of beauty products, is one of the names on this week’s IPO calendar. Goldman Sachs and Sandler O’Neill are the lead or joint-lead managers of three IPOs each. The calendar is expected to raise about $600 million.
 
From Goldman Sachs
·         Jumei International Holding (JMEI – proposed)  is a Beijing-based online retailer of beauty products in China. The company reports it has about 10.5 million customers. An estimated 1,700 suppliers and third-party merchants offer products to Jumei’s customers. For more information, please click here: Jumei International Holding Ltd)
·         TrueCar(TRUE – proposed) is a Santa Monica, California-based website enabling users to obtain market-based pricing data on new and used cars, and to connect with the company’s network of TrueCar Certified Dealers.(For more information, please click here: TrueCar)
·         Zendesk (ZEN – proposed) is a San Francisco-based software development company that provides a SaaS customer service platform. The company’s platform provides ticketing, self-service options and customer support features to about 40,000 customers who are located in 140 countries.(For more information, please click here: Zendesk)
 
 
From Sandler O’Neill
·         Bankwell Financial Group (BWFG) is a New Canaan, Connecticut-based bank holding company offering a broad range of financial services through its banking subsidiary, Bankwell Bank. (Note: Its preliminary prospectus states: “Prior to this offering, there has been no established public market for our common stock.” However, the OTC BB showed 200 shares traded at $22 each on May 7, 2014, and a spotty trading history back to April 28, 2010.) For more information, please click here: Bankwell Financial Group)
·         ETRE REIT (ECAV – proposed) is a New York City-based REIT created  to let people who acquire shares in this offering to own 1201 Connecticut Avenue NW, an office building located in the “Golden Triangle” in Washington, D.C. (For more information, please click here: ETRE REIT)
·         ServisFirst Bancshares (SFBS – proposed) is a Birmingham, Alabama-based bank holding company providing commercial banking services through 12 full-service banking offices located in Alabama, the panhandle of Florida and a loan production office in Nashville, Tennessee. (Note: Its proposed offering price is $91 to $93 share.) (For more information, please click here: ServisFirst Bancshares)
 
Looking into the following week, the calendar has three IPOs. One is – yes – out of China. The three deals are expected to raise about $1.9 billion. As we have seen in the past, more names could pop onto the IPO launching pad by the time that Monday, May 19, rolls around.
 
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.
 
 

IPO Traffic: Week Ending May 9, 2014

  Lead Manager/ # of Price Range   Dollar SCOOP
New Filings (Proposed Symbol) Joint-Lead Managers Shares Low High Volume Ratings
1347 Capital Corp. (TFSCU) (u) EarlyBirdCapital 4.00 $10.00 $10.00 $40.00 n.a.
Alibaba Group Holding  (TBA) Credit Suisse/ Deutsche Bank Securities/ Goldman Sachs/ J.P. Morgan/ Morgan Stanley/ Citi $1,000.00 n.a.
Century Communities (TBA) FBR       $102.00 n.a.
DermTech International  (DMTK) Maxim Group       $25.00 n.a.
Eclipse Resources (ECR) Citigroup/ Goldman Sachs/ Morgan Stanley/ Barclays/ BMO Capital Market/ Deutsche Bank Securities/ KeyBanc Capital Market/ RBC Capital Markets $100.00 n.a.
JP Energy Partners LP (JPEP) Barclays/ BofA Merrill Lynch       $200.00 n.a.
Markit Ltd.  (TBA) BofA Merrill Lynch/ Barclays/ Citigroup/ Credit Suisse/ Deutsche Bank Securities/ Goldman Sachs/ HSBC/ J.P. Morgan/ Morgan Stanley/ UBS Investment Bank $750.00 n.a.
Viper Energy Partners LP (VNOM) Barclays       $100.00 n.a.
WL Ross Holding  (WLRHU) Deutsche Bank Securities/ BofA Merrill Lynch 40.00 $10.00 $10.00 $400.00 n.a.
Zhaopin Ltd (ZPIN) Credit Suisse/ UBS Investment Bank       $100.00 n.a.
n.a. (not available)            
u (unit offering)            
             
Postponed            
Radius Health  (RDUS) Jefferies/ Cowen and Company 5.00 $14.00 $16.00 $75.00 1-Star
             
Withdrawn            
None            
             
New Terms            
21st Century Oncology Holdings (ICC) Morgan Stanley/ J.P. Morgan/ Wells Fargo Securities 13.33 $14.00 $16.00 $200.00 n.a.
Agile Therapeutics  (AGRX) RBC Capital Markets/ William Blair & Company 4.62 $12.00 $14.00 $60.00 n.a.
Bankwell Financial Group (BWFG) Sandler O’Neill + Partners, L.P. 2.22 $21.00 $24.00 $50.00 N/C
First Foundation  (FFWM) Sandler ONeill + Partners/ Keefe, Bruyette & Woods A Stifel Company 2.22 $21.00 $24.00 $50.00 n.a.
Foresight Energy Partners LP (FELP) Barclays/ Citigroup/ Morgan Stanley/ J.P. Morgan/ Goldman Sachs/ Deutsche Bank Securities $300.00 n.a.
JD.com (JD) BofA Merrill Lynch/ UBS Investment Bank 93.69 $16.00 $18.00 $1,592.66 n.a.
Jumei International Holding  (JMEI) Goldman Sachs (Asia)/ Credit Suisse/ J.P. Morgan 9.50 $19.50 $21.50 $194.75 2-Stars
Medical Transcription Billing  (MTBC) Summer Street Research Partners   $9.00 $11.00 $35.00 n.a.
Microlin Bio (MCLB) Brean Capital/ Sunrise Securities 2.73 $10.00 $12.00 $30.00 n.a.
TrueCar (TRUE) Goldman Sachs/ J.P. Morgan 7.78 $12.00 $14.00 $101.08 2-Stars
Zendesk (ZEN) Goldman Sachs/ Morgan Stanley/ Credit Suisse 11.11 $8.00 $10.00 $100.00 2-Stars
n.a. (not available)            
N/C = No Call – stock traded on theOCT BB             
             
IPOs Priced Lead Shares Amount Offer Close %
Week of May 5, 2014 Manager(s) Offered Raised Price 5/9/14 Change
GasLog Partners LP  (GLOP) Citigroup 8.40 $176.40 $21.00 $26.11 24.33%
PBF Logistics LP (PBFX) Barclays/ UBS Investment Bank 13.75 $316.25 $23.00 $27.68 20.35%
Tuniu (TOUR) Morgan Stanley/ Credit Suisse/ China Renaissance 8.00 $72.00 $9.00 $10.07 11.89%
Cheetah Mobile  (CMCM) Morgan Stanley/ J.P. Morgan/ Credit Suisse 12.00 $168.00 $14.00 $14.26 1.86%
Alcentra Capital (ABDC) Raymond James/ Robert W. Baird/ Keefe, Bruyette & Woods (A Stifel Company ) 6.67 $100.00 $15.00 $15.05 0.33%
K2M Group Holdings (KTWO) Piper Jaffray/ Barclays/ Wells Fargo Securities 8.83 $132.38 $15.00 $15.01 0.07%
Alder BioPharmaceuticals  (ALDR) Credit Suisse/ Leerink Partners 8.00 $80.00 $10.00 $10.00 0.00%
Dorian LPG  (LPG) J.P. Morgan/ UBS Investment Bank 7.11 $135.00 $19.00 $19.00 0.00%

The IPO Buzz: Rebound from an IPO Rough Patch

Only four IPOs came to market last week. Three were priced below their original filing ranges; they were losers. The other was priced on the low end of its price range and wound up a winner, UP 5 cents per share. Nevertheless, that was an improvement over the previous week.
 
In the week of April 21, three deals were priced – all losers.
 
During the week of April 14, 10 IPOs were priced and all came to market below their original filing ranges. That worked, to a lesser extent. Seven opened above the reduced pricings, two did not and the other was unchanged. Their average opening-day gain was 3.37 percent, DOWN from 17.8 percent, the average opening-day gain for all IPOs priced this year through Friday, April 11.   
 
Drugs, China’s Cheetah and Energy
This week’s IPO calendar lists nine deals with bankers aiming to raise over $1.2 billion. The IPO professionals are reportedly looking at four: Alder BioPharmaceuticals, Cheetah Mobile, GasLog Partners LP and PBF Logistics LP.
 
Alder BioPharmaceuticals (ALDR – proposed)  is a Bothell, Washington-based clinical-stage biopharmaceutical company. It is developing therapeutic antibodies with the potential to transform current treatment models. One of the drugs in its pipeline is aimed at preventing migraine headaches. Note: Alder has a collaboration agreement with Bristol-Myers Squibb to develop Clazakizumab, a humanized monoclonal antibody designed to treat rheumatoid arthritis. Bristol-Myers Squibb has also indicated an interest in buying up to $20 million of common stock in this deal at the initial public offering price. In addition, certain directors and existing stockholders have indicated an interest in purchasing up to an aggregate of $14 million of common stock in this deal at the IPO price. For more information, please click here: Alder BioPharmaceuticals)
 
Cheetah Mobile (CMCM – proposed) is a Beijing-based security software maker known for its Android smartphone apps designed to make the Internet and smartphone experience faster, safer and easier. Its best-known product is Clean Master, an app that removes junk files from a mobile device at the touch of a button. Other apps include Battery Doctor, which prolongs battery life, and CM Security, which offers anti-virus protection and lets users block unwanted calls. Cheetah Mobile gets a significant chunk of its revenue from online marketing partnerships with Alibaba, Baidu and Tencent, three of China’s biggest players in e-commerce and mobile gaming, according to the company’s prospectus. The platform is powered by Cheetah’s proprietary cloud-based data analytics engines. (For more information, please click here: Cheetah Mobile)
 
GasLog Partners LP (GLOP – proposed) is based in Monaco. Its general partner is controlled by Peter G. Livanos, a Greek shipping magnate who is the founder and chairman of GasLog Ltd. GasLog Partners LP is a Marshall Islands master limited partnership or MLP formed to own, operate and acquire carriers to transport liquefied natural gas under long-term charters. Worth noting from the prospectus: “Certain significant investors in GasLog Ltd., including members of the Radziwill family, the Onassis Foundation and members of the Livanos family, have indicated that they currently intend to buy up to an aggregate of approximately $60 million, or up to an aggregate of about 3 million common units in the offering at the public offering price. In addition, the underwriters have reserved up to 5 percent of the common units offered for sale in the offering for officers, directors and employees and related persons.”
(For more information, please click here: GasLog Partners LP)
 
PBF Logistics LP (PBFX – proposed) is a Parsippany, New Jersey-based master limited partnership recently formed by PBF Energy to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets. (Note: PBF Logistics LP plans to pay a minimum quarterly distribution of 30 cents per unit for each complete quarter, or $1.20 per unit on an annualized basis, to yield 6 percent.)  (For more information, please click here: PBF Logistics LP)
 
Looking into the following week, the calendar has just one IPO. As we have seen in the past, more names could pop onto the IPO launching pad by the time that Monday, May 12, rolls around.
 
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.

IPO Traffic: Week Ending May 2, 2014

  Lead Manager/ # of Price Range   Dollar SCOOP
New Filings (Proposed Symbol) Joint-Lead Managers Shares Low High Volume Ratings
Ambrx  (AMBX) Stifel/ Wells Fargo Securities       $86.25 n.a.
Aspen Aerogels (ASPN) Barclays/ J.P. Morgan/ Citigroup       $86.25 n.a.
Atento S.A.   (TBA) Morgan Stanley/ Credit Suisse/ Itaú BBA     $300.00 n.a.
ProteinSimple  (PRTN) J.P. Morgan/ BofA Merrill Lynch       $86.25 n.a.
Westlake Chemical Partners LP  (WLKP) Barclays/ UBS Investment Bank       $271.69 n.a.
n.a. (not available)            
             
Postponed            
None            
             
Withdrawn            
Trustwave Holdings (TWAV) Morgan Stanley/ J.P. Morgan Securities/ Barclays Capital 6.25 $15.00 $17.00 $100.00 1-Star
             
New Terms            
Arista Networks (ANET) Morgan Stanley/ Citigroup       $241.00 n.a.
CardioDx (CDX) Jefferies/ Piper Jaffray       $86.25 n.a.
Dorian LPG  (LPG) J.P. Morgan/ UBS Investment Bank 7.11 $18.00 $20.00 $135.00 N/C
ETRE REIT (ECAV) Sandler O’Neill + Partners, L.P. 3.71 $16.00 $16.00 $59.33 n
GasLog Partners LP  (GLOP) Citigroup 8.40 $19.00 $21.00 $168.00 2-Stars
GlobeImmune  (GBIM) Aegis Capital Corp. 2.19 $15.00 $17.00 $35.00 n.a.
Mapi – Pharma Ltd. (MAPI) Aegis Capital Corp. 2.67 $13.00 $15.00 $37.31 n.a.
Medical Transcription Billing  (MTBC) Summer Street Research Partners       $35.00 n.a.
Memorial Resource Development  (MRD) Citigroup/ Barclays/ BofA Merrill Lynch/ BMO Capital Markets/ Goldman Sachs/ Raymond James/ RBC Capital Markets/ Wells Fargo Securities $700.00 n.a.
PBF Logistics LP (PBFX) Barclays/ UBS Investment Bank 13.75 $19.00 $21.00 $275.00 3-Stars
SCYNEXIS (SCYX) RBC Capital Markets/ Canaccord Genuity 6.20 $10.00 $10.00 $62.00 1-Star
SD COMPANY  (SDPI) Roth Capital Partners, LLC 5.00 $5.00 $7.00 $30.00 n.a.
ServisFirst Bancshares (SFBS) Sandler ONeill & Partners 0.63 $91.00 $93.00 $57.50 n.a.
Tuniu (TOUR) Morgan Stanley/ Credit Suisse/ China Renaissance 8.00 $9.00 $11.00 $80.00 2-Stars
N/C = No Call – stock traded on the Norwegian OTC List under the symbol “DORIAN”       
             
IPOs Priced Lead Shares Amount Offer Close %
Week of April 28, 2014 Manager(s) Offered Raised Price 5/2/14 Change
Papa Murphy’s Holdings (FRSH) Jefferies/ Baird/ Wells Fargo Securities 5.83 $64.17 $11.00 $11.05 0.45%
SCYNEXIS (SCYX) RBC Capital Markets/ Canaccord Genuity 6.20 $62.00 $10.00 $9.80 -2.00%
Ares Management, L.P.  (ARES)
 
J.P. Morgan/ BofA Merrill Lynch/ Goldman Sachs/ Morgan Stanley/ Wells Fargo Securities 11.36 $215.91 $19.00 $18.60 -2.11%
Aldeyra Therapeutics (ALDX) Aegis Capital Corp 1.50 $12.00 $8.00 $7.20 -10.00%

The IPO Buzz: Cold Spring for IPOs

For IPOs, it’s a cold spring – like the chilly weather that has prevailed in much of the country this month. Some plants thrive when the air is cold and damp. Others won’t bloom until warmer temps prevail.
 
This week’s IPO calendar contains just four deals. (Details below.) That’s not unusual when the underlying U.S. stock market is in consolidation.
 
A Chill from Ukraine
Worth remembering: Stocks are bought in hope, held in greed and sold in fear. What drives these emotions is the perception of interest rates, the perception of earnings and from time to time, politics.
 
Wall Street’s worry beads are getting a workout because of politics – the escalation of tensions over Ukraine and Russia.
 
In a word, Ukraine is the reason why today’s IPO traffic has slowed to a dribble. But that doesn’t mean the pipeline plus the unseen confidential filings won’t be producing a bountiful harvest when a more favorable stock market returns.  
 
At the close on Friday, April 25, 2014, the Dow Jones Industrial Average was down 1.3 percent from its record closing high set on Dec. 31, 2013. The NASDAQ Composite Index was down 6.48 percent from its recent closing high set on March 5, 2014, and the S&P 500 was down 1.45 percent from its record closing high set on April 2.
 
A 10 percent pullback from the most recent closing high is generally considered a correction in either an index or a stock. A 20 percent pullback is a bear market.
At Friday’s close, the major indexes were well within the consolidation phase. Given 2013’s performances – the Dow industrials up 29.6 percent, the NASDAQ up 38.3 percent and the S&P 500 up 26.5 percent – the current consolidation should be no cause for alarm.
 
Pipeline Full of Hope
Today’s IPO pipeline lists over 120 companies that have filed to go public. They are expecting to raise over $18.4 billion. They range from JD.com, China’s largest online direct retailer, which expects to raise $1.5 billion, to Box, a provider of cloud-based, mobile-optimized Enterprise Content Collaboration platform, which is said to be one of about three dozen undeclared Silicon Valley-based companies looking to go public.
 
Let’s not forget the much reported pending IPO of the giant Chinese Internet company Alibaba.(Note: At press time, there has been no filing; therefore nothing to report.)
 
Raising the Dough
Wall Street is a place where it’s all about the dough. A credit and private-equity firm and a pizza chain are the two new faces on this week’s IPO calendar, which counts four deals expected to raise about $540 million. Here are the two fresh IPO faces:
 
Ares Management (ARES – proposed) is a Los Angeles-based global alternative asset manager with about $74 billion of assets under management and 15 offices in the United States, Europe and Asia. (For more information, please click here:  Ares Management, L.P.)
 
Papa Murphys Holdings (FRSH – proposed) is a Vancouver, Washington-based franchisor and operator of the largest Take ‘N’ Bake pizza chain in the United States. The company has about 1,418 Papa Murphy’s Take ‘N’ Bake Pizza stores. It believes it has been rated the No. 1 pizza chain in the United States by multiple third-party consumer studies. (For more information, please click here: Papa Murphys Holdings)
 
Looking into the following week, the calendar has three IPOs. As we have seen in the past, more names could pop onto the IPO launching pad by the time that Monday, May 5, rolls around.
 
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.
 

IPO Traffic: Week Ending April 25, 2014

  Lead Manager/ # of Price Range   Dollar SCOOP
New Filings (Proposed Symbol) Joint-Lead Managers Shares Low High Volume Ratings
GWG Holdings (GWGH) TBA       $15.00 n.a.
Heritage Insurance Holdings   (TBA) Citigroup       $100.00 n.a.
Orion Engineered Carbons Holdings (TBA) Morgan Stanley/ Goldman, Sachs/ UBS Securities   $300.00 n.a.
Ulthera  (ULTH) J.P. Morgan/ Citigroup       $86.25 n.a.
n.a. (not available)            
tba (to be announced)            
             
Postponed            
None            
             
             
Withdrawn            
None            
             
New Terms            
Alder BioPharmaceuticals  (ALDR) Credit Suisse/ Leerink Partners 7.15 $13.00 $15.00 $100.10 n.a.
Aldeyra Therapeutics (ALDX) Aegis Capital Corp 1.20 $10.00 $12.00 $13.20 1-Star
Ares Management, L.P.  (ARES)
 
J.P. Morgan/ BofA Merrill Lynch/ Goldman Sachs/ Morgan Stanley/ Wells Fargo Securities 18.20 $21.00 $23.00 $400.32 1-Star
Ariosa Diagnostics  (AROS) J.P. Morgan/ Citigroup 3.50 $16.00 $18.00 $59.50 n.a.
Cheetah Mobile  (CMCM) Morgan Stanley/ J.P. Morgan/ Credit Suisse     $300.00 n.a.
Cheetah Mobile  (CMCM) Morgan Stanley/ J.P. Morgan/ Credit Suisse 12.00 $12.50 $14.50 $162.00 n.a.
K2M Group Holdings (KTWO) Piper Jaffray/ Barclays/ Wells Fargo Securities 8.85 $16.00 $18.00 $150.45 n.a.
Materialise NV (MTLS) Piper Jaffray/ Credit Suisse       $300.00 n.a.
Papa Murphy’s Holdings (FRSH) Jefferies/ Baird/ Wells Fargo Securities 5.83 $11.00 $13.00 $70.00 2-Stars
Quotient (QTNTU) UBS Investment Bank/ Baird/ Cowen  5.00 $8.00 $8.00 $40.00 1-Star
Radius Health  (RDUS) Jefferies/ Cowen and Company 5.00 $14.00 $16.00 $75.00 n.a.
             
IPOs Priced Lead Shares Amount Offer Close %
Week of April 21, 2014 Manager(s) Offered Raised Price 4/25/14 Change
Quotient (QTNTU) UBS Investment Bank/ Baird/ Cowen  5.00 $40.00 $8.00 $7.45 -6.88%
Lombard Medical  (EVAR) Jefferies/ Barclays 5.00 $55.00 $11.00 $10.00 -9.09%
Viggle  (VGGL) Ladenburg Thalmann/ Roth Capital Partners 4.38 $35.00 $8.00 $5.75 -28.13%
             

The IPO Buzz: IPO Markdowns and Magic

Last week’s opening-day report card showed eight winners and two losers. The average gain for all 10 was 5.26 percent. That’s well above the recent 10-year average for marked-down IPOs.  
 
Let’s reach into the archives and dust off the IPO history books at the U.S. Securities and Exchange Commission: The records show that 1,592 IPOs have been priced over the last 10 years. (This excludes unit offerings consisting of common stock and warrants, closed-end funds, business development companies and foreign companies offering American Depositary Shares, which represent ordinary shares already listed on their own national stock exchanges.)
 
From May 1, 2004, through April 18, 2014, 578 IPOs were priced below their original filing terms. That’s 29.6 percent of the traffic. Last week’s traffic was 100 percent.
 
Of the 578 IPOs priced below range, 284 closed out their opening day as winners, 233 were losers, and 71 finished unchanged from their initial offering prices.
 
Many Happy Returns
Now here’s what is important: the return to investors.
 
Cutting an IPO’s size did not guarantee a big payday for investors. The average opening-day gain for the 578 IPOs priced below range over the past decade was 1.77 percent.
 
In contrast, last week’s 10 IPOs priced below range had an average opening-day gain of 5.26 percent. That’s nearly three times the average gain for this category of deals over the past 10 years.
 
But these percentages are well below the average opening-day gain for the 1,014 IPOs priced within and above their original filing ranges. That is 19.1 percent.
 
Highs and Lows
Let’s take a look at the best and the worst from the marked-down IPOs from the past.
 
The Hero
Electro-Optical Sciences (changed its name to MELA Science (MELA) in May 2010) scored the sharpest opening-day gain among those IPOs priced below range. It was a whopping 54.2 percent. On Oct. 27, 2005, Electro-Optical priced its IPO of 4 million shares at $5 each. That was down from 4 million shares at $5.50 to $6.50 each. It opened at $6.50 and closed its opening day at $7.71. It recently traded at 54 cents per share. 
 
The Goat
ORBCOMM (ORBC) scored the sharpest opening-day loss among those IPOs priced below range. It was down 29.6 percent. On Nov. 1, 2006, ORBCOMM priced its IPO of 9.2 million shares at $11 each. That was down from 11.2 million shares at $12 to $14 each. It opened at $11 and closed its opening day at $7.75. It recently traded at $6.55 per share.
 
Markdown On This Week’s Menu
That brings us to this week and three recycled deals. Each has been on past calendars. One has already seen a price cut.
 
Quotient (QTNT – proposed) is a United Kingdom-based commercial-stage diagnostics company looking to reduce healthcare costs and improve patient care in providing tests for blood grouping and serological disease screening. The offer’s size has been reduced to 5 million shares at $9 to $11 each, DOWN from 5 million shares at $14 to $16 each. (For more information, please click here: Quotient)
 
With earnings season starting and hopefully a better stock market, who knows what is waiting in the wings to step on the IPO calendar?
 
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.
 

IPO Traffic: Week Ending April 18, 2014

  Lead Manager/ # of Price Range   Dollar SCOOP
New Filings (Proposed Symbol) Joint-Lead Managers Shares Low High Volume Ratings
Angion Biomedica  (ANGN) Aegis Capital Corp       $34.50 n.a.
Chukong Holdings Ltd  (TBA) Morgan Stanley/ Deutsche Bank Securities/ China Renaissance Securities $150.00 n.a.
ContraFect (CFRX/CFRXW)(u) Maxim Group LLC       $23.00 n.a.
First Foundation  (FFWM) Sandler ONeill + Partners/ Keefe, Bruyette & Woods A Stifel Company $58.00 n.a.
Live Oak Bancshares  (LOB) Keefe, Bruyette & Woods (A Stifel Company)     $86.25 n.a.
ServisFirst Bancshares (SFBS) Sandler ONeill & Partners       $72.00 n.a.
Taggares Agriculture  (TAG) Janney Montgomery Scott/ ROTH Capital Partners 7.00     $48.30 n.a.
Vyrix Pharmaceuticals  (VYRX) Aegis Capital Corp/ Fordham Financial Management   $28.75 n.a.
ZAFGEN (ZFGN) Leerink Partners/ Cowen and Company     $86.25 n.a.
ZOOSK (ZSK) BofA Merrill Lynch/ Citigroup/ RBC Capital Markets   $100.00 n.a.
n.a. (not available)            
n/c (no call)             
             
Postponed            
None            
             
Withdrawn            
Associated Materials Group  (TBA) Goldman, Sachs/ Barclays/ UBS Investment Bank   $100.00 n.a.
Sundance Energy Australia Limited (SNDE) Wells Fargo Securities/ Canaccord Genuity/ UBS Investment Bank 7.75 $16.50 $18.50 $135.63 n/c
n/c (no call)            
             
New Terms            
Dorian LPG  (LPG) J.P. Morgan/ UBS Investment Bank       $150.00 n.a.
JD.com (JD) BofA Merrill Lynch/ UBS Investment Bank     $1,500.00 n.a.
Quotient (QTNT) UBS Investment Bank/ Baird/ Cowen  5.00 $9.00 $11.00 $50.00 1-Star
             
IPOs Priced Lead Shares Amount Offer Close %
Week of April 14, 2014 Manager(s) Offered Raised Price 4/17/14 Change
TriVascular Technologies  (TRIV) J.P. Morgan/ Credit Suisse 6.50 $78.00 $12.00 $14.32 19.33%
Weibo (WB) Goldman Sachs (Asia)/ Credit Suisse 16.80 $285.60 $17.00 $20.24 19.06%
Leju Holdings Limited (LEJU) Credit Suisse/ J.P. Morgan 10.00 $100.00 $10.00 $11.86 18.60%
Paycom Software (PAYC) Barclays/ J.P. Morgan 6.65 $99.68 $15.00 $16.25 8.33%
Moelis  (MC) Goldman Sachs/ Morgan Stanley/ Moelis & Company 6.50 $162.50 $25.00 $26.09 4.36%
Sabre  (SABR) Morgan Stanley/ Goldman Sachs/ BofA Merrill Lynch/ Deutsche Bank Securities 39.20 $627.20 $16.00 $16.50 3.13%
Sportsmans Warehouse Holdings  (SPWH) Credit Suisse/ Goldman Sachs 12.50 $118.75 $9.50 $9.75 2.63%
Vital Therapies (VTL) BofA Merrill Lynch/ Credit Suisse 4.50 $54.00 $12.00 $12.25 2.08%
City Office REIT  (CIO) Janney Montgomery Scott/ Wunderlich Securities/ Oppenheimer 5.80 $72.50 $12.50 $12.40 -0.80%
Opus Bank  (OPB) J.P. Morgan Securities/ Credit Suisse/ Sandler ONeill & Partners/ Keefe, Bruyette & Woods, Inc. (A Stifel Company) 5.13 $153.78 $30.00 $29.44 -1.87%

The IPO Buzz: Life Beyond The IPO Speed Bump

 
The Past
Jan. 23 and Jan. 24, 2014: The Dow Industrials fell 497.23 points. Due to seasonal factors, the IPO calendar was just starting to gear up, and that week produced only three deals. The following week, Jan. 25, the calendar produced eight deals.
 
Jan. 31 (a Friday) and Feb. 3, 2014 (a Monday): The Dow industrials fell 456.72 points. The IPO calendar produced 10 deals that week. The following week, starting Feb. 10, it produced eight deals.
 
By the time that 2014’s first quarter ended, the IPO calendar produced 70 deals, according to the U.S. Securities and Exchange Commission’s filings. That was more than double the 34 IPOs that were priced during 2013’s first quarter. And the IPO market had the wind in its face. For the first quarter of 2014, the Dow  lost 0.72 percent. A down stock market is usually not good for the IPO production line.
 
The Present
On Friday, April 11, the calendar listed eight IPOs, a busy time. By the day’s close, four had been priced, three were pushed into this week, and one was pulled off the calendar. And against a falling stock market, Friday’s Final Four did well.
 
Three finished in the winner’s circle, and the average opening-day gain for all four was 20.2 percent. The Dow industrials lost 143.47 points.
 
Nevertheless, last week’s sharp pullback raised concerns about this week’s IPO calendar and tempered the IPO experts’ enthusiasm “due to market conditions.”
 
Short Week and China’s Twitter
This week ends with Good Friday, giving us a four-day work week. And good stock market, bad stock market – the calendar looks to be busy. It has 12 IPOs looking to raise almost $2.6 billion. Among the names that could draw some attention are:
 
Leju Holdings Limited (LEJU – proposed) is a Beijing-based real estate services provider offering real estate e-commerce, online advertising and online listing services through its online platform, which comprises local websites covering over 250 cities in China and various mobile applications. (For more information, please click here: Leju Holdings Limited)
 
Moelis (MC – proposed) is a New York City-based investment bank that provides innovative strategic and financial advice to a diverse client base, including corporations, governments and financial sponsors. (For more information, please click here: Moelis)
 
Sabre (SABR – proposed) is a Southlake, Texas-based technology solutions provider to the global travel and tourism industry. Through its Travel Network business, it process hundreds of millions of transactions annually, connecting the world’s leading travel suppliers, including airlines, hotels, car rental brands, rail carriers, cruise lines and tour operators, with travel buyers in a comprehensive travel marketplace. In addition, it operates Travelocity, one of the world’s most recognizable brands in the online consumer travel e-commerce industry. (For more information, please click here: Sabre)
 
Sportsman’s Warehouse (SPWH – proposed) is a Midvale, Utah-based outdoor sporting goods retailer focused on meeting the everyday needs of the seasoned outdoor veteran, the first-time participant and every enthusiast in between. (For more information, please click here: Sportsman’s Warehouse Holdings)
 
Weibo (WB – proposed) is a Beijing-based social media platform that has been called China’s Twitter. Weibo enables people to create, distribute and discover Chinese-language content so Chinese people and organizations can publicly express themselves in real time, interact with others on a massive global platform, and stay connected with the world. For more information, please click here: Weibo)
 
Looking into the following week, the calendar has one IPO. But you never know what Monday will bring from the SEC’s filing window.
 
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.
 

IPO Traffic: Week Ending April 11, 2014

  Lead Manager/ # of Price Range   Dollar SCOOP
New Filings (Proposed Symbol) Joint-Lead Managers Shares Low High Volume Ratings
Dance Biopharm (DNCE) Wells Fargo Securities/ Stifel       $75.00 n.a.
GasLog Partners LP  (GLOP) Citigroup       $150.00 n.a.
Goodman Networks (GNET) BofA Merrill Lynch/ Jefferies       $100.00 n.a.
Jumei International Holding  (JMEI) Goldman Sachs (Asia)/ Credit Suisse/ J.P. Morgan     $400.00 n.a.
Minerva Neurosciences (NERV) Jefferies       $69.00 n.a.
Mobile Iron  (MOBL) Morgan Stanley/ Goldman Sachs/ Deutsche Bank Securitie/ Barclays $100.00 n.a.
Parsley Energy (PE) Credit Suisse/ Goldman Sachs/ J.P. Morgan/ Wells Fargo Securities   $400.00 n.a.
Principal Maritime Tankers  (PMAR) UBS Investment Bank       $100.00 n.a.
SD COMPANY  (SDPI) Roth Capital Partners, LLC       $34.50 n.a.
Zendesk (ZEN) Goldman Sachs/ Morgan Stanley/ Credit Suisse     $150.00 n.a.
n.a. (not available)            
             
Postponed            
Lombard Medical (EVAR) Jefferies/ Barclays 3.64 $15.00 $18.00 $60.00 n/c
Stalwart Tankers (STST) Jefferies/ Wells Fargo Securities/ Global Hunter Securities 12.50 $11.00 $13.00 $150.00 1-Star
N/C – no call  – transplant from London AIM            
             
Withdrawn            
None            
             
New Terms            
Resonant (RESN) MDB Capital Group LLC 2.25 $6.00 $6.00 $13.50 n.a.
Vital Therapies (VTL) BofA Merrill Lynch/ Credit Suisse 4.50 $13.00 $15.00 $63.00 n.a.
Sportsmans Warehouse Holdings  (SPWH) Credit Suisse/ Goldman Sachs 12.50 $11.00 $13.00 $150.00 n.a.
             
IPOs Priced Lead Shares Amount Offer Close %
Week of April 7, 2014 Manager(s) Offered Raised Price 4/11/14 Change
Zoe’s Kitchen  (ZOES) Jefferies/ Piper Jaffray/ Baird 5.83 $87.50 $15.00 $24.72 64.80%
Phibro Animal Health (PAHC) BofA Merrill Lynch/ Morgan Stanley/ Barclays 12.75 $191.18 $15.00 $17.00 13.33%
Enable Midstream Partners, LP (ENBL) Morgan Stanley/ Barclays/ Goldman Sachs 25.00 $500.00 $20.00 $22.20 11.00%
iKang Healthcare Group (KANG) BofA Merrill Lynch/ UBS Investment Bank 10.90 $152.67 $14.00 $14.05 0.36%
La Quinta Holdings  (LQ) J.P. Morgan/ Morgan Stanley/ BofA Merrill Lynch/ Citigroup/ Credit Suisse/ Deutsche Bank Securities/ Goldman Sachs/ Wells Fargo Securities 38.25 $650.25 $17.00 $16.86 -0.82%
Cerulean Pharma  (CERU) Leerink Partners 8.50 $59.50 $7.00 $6.85 -2.14%
Ally Financial (ALLY) Citigroup/ Goldman, Sachs/ Morgan Stanley/ Barclays/ Deutsche Bank Securities 95.00 $2,375.00 $25.00 $24.20 -3.20%
Farmland Partners   (FPI) Baird, BMO Capital Markets, Janney Montgomery Scott 3.80 $53.20 $14.00 $12.98 -7.29%
Adamas Pharmaceuticals (ADMS) Credit Suisse/ Piper Jaffray 3.00 $48.00 $16.00 $13.00 -18.75%