If this week’s outlook for the IPO Calendar holds, with nothing on tap, then May will close out with an opening-day moonshot. That was Inari Medical (NARI), and we’ll have more on this in a minute. But there is more good news.
In addition to the moonshot, the 2020 IPO Scorecard showed an average gain of 41.65 percent for the year to date. That’s about 10.7 times greater than the NASDAQ Composite Index year-to-date gain of 3.92 percent. On Friday, May 22nd, the NASDAQ closed at 9,324.59, up 3.92 percent from 8,972.60 on Dec. 31, 2019.
Check Out the Scorecard
The 2020 IPO Scorecard lists a total of 34 deals. This excludes unit offerings, bank conversions, “best efforts” offerings, Regulation A+ offerings, blank checks (aka SPACs), closed-end funds, companies trading on the pink sheets moving up to the NASDAQ, and foreign-traded securities making their debuts in the U.S. capital markets. The latter are public offerings because investors can buy the underlying shares on foreign exchanges before their U.S. pricing dates.
On Friday, May 22nd, 20 IPOs closed above their initial public offering prices, with five up 100 percent or more, while 14 closed below their IPO prices. (Note: An opening-day gain of 100 percent or more is called a “moonshot.”)
Here are 2020’s top three IPO aftermarket performers:
- Schrodinger (SDGR) up 306.9 percent
- 1Life Healthcare (ONEM) up 171.4 percent
- Inari Medical (NARI) up 123.7 percent
(For more information on these companies, please check the IPO profiles on IPOScoop’s website.)
A Moonshot Revisited
Now let’s flip back to last week and take a look at that opening-day moonshot. The deal, Inari Medical, was not even on the IPO Calendar until Monday morning, May 18th.
Through the magic of the U.S. Securities and Exchange Commission, Inari Medical posted pricing terms on May 18th for its IPO: 7.3 million shares at $14 to $16 each. Its bankers set the pricing date for Thursday, May 21st, to trade Friday, May 22nd.
But the fun was just beginning.
On Thursday morning, Inari Medical’s price range was increased by 16.7 percent to $17 to $18, on the same number of shares. The deal was priced after the close on Thursday: 8.2 million shares at $19 each. That’s right. Bankers upsized the deal and priced it above the high end of its new price range. The IPO started trading Friday at $41.30 and closed at $42.51, up 123.7 percent from its IPO price.
Inari Medical, based in Irvine, California, is a commercial-stage medical device company focused on developing products to treat and transform the lives of patients suffering from venous diseases. Inari’s first two products are minimally invasive FDA-cleared devices: 1.ClotTriever to remove a clot from peripheral blood vessels to treat DVT (deep vein thrombosis) and 2. FlowTriever, the first thrombectomy system cleared by the FDA to treat pulmonary embolism (PE), the prospectus says.
Inari Medical’s moonshot had a helpful spillover effect on the 2020 IPO Scorecard.
A Holiday Tradition
Wall Street was closed on Monday in observance of the Memorial Day holiday to honor all the men and women who have died while serving in the U.S. military.
The week of Memorial Day is traditionally quiet in the Land of IPOs. This week is no exception. (For Wall Street, it’s also a four-day work week.)
First Week of June
This brings us to the week of June 1st. The IPO Calendar is as white as the sand of Waikiki. Nevertheless, some names could surf onto the IPO Calendar when the SEC’s filing window opens again for business on Tuesday morning, May 26th.
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 opinion.