The IPO Buzz: Fall’s Opening Act

So Fluidigm will open the fall 2008 season.
    
Until Fluidigm’s amended SEC filing, there were no deals on the IPO calendar.
 
Fluidigm (GMS: FLDM proposed) (Quote, News & Chart), a San Francisco-based developer of integrated fluidic circuits to automate drug development and other life sciences research, plans to offer 5.3 million shares at $14 to $16 each. The company hopes to raise $79.5 million. The deal is expected to be priced Thursday evening, Sept. 18, and trade Friday morning, Sept. 19. 
 
This will be the first IPO to come to mart since mid-August. Its mid-September pricing is in keeping with other past post-Labor Day debuts.
 
REMEMBERING SEPTEMBERS PAST
From 1998 through 2007, seven companies went public between Sept. 14 and Sept. 21, according to SEC filings. The earliest debut was on Sept. 6, 2006, and the latest was on Oct. 10, 2002. 
 
The Early Bird
New Oriental Education International
(NYSE: EDU) (Quote, News & Chart), a Beijing-based provider of educational services in China, priced 9.1 million shares at $15 each on Sept. 6, 2006. The stock opened the following morning at $22. Since then, New Oriental sold high at $91.77 on Dec. 5, 2007, and closed at $67.56 on Sept. 5, 2008 — UP 350 percent from its initial offering price.
 
Post-Labor Day 2006: Bankers priced 107 IPOs of the year’s 240 IPOs. The wind was at their backs. On Dec. 29, 2006, the Nasdaq Composite Index closed at 2,415.29, UP 11.4 percent from 2,167.84 on Sept. 6, 2006. 
 
The Late Bloomer
Montpelier Re Holdings
(NYSE: MRH) (Quote, News & Chart), a Bermuda-based provider of property and casualty reinsurance and insurance products, priced 9.5 million shares at $20 each on Oct. 10, 2002. The stock opened the following morning at $22. Since then, Montpelier Re has sold as high as $43.10 on March 7, 2005, and closed on Sept. 5, 2008, at $16.37, DOWN 18.2 percent from its initial offering price.
 
Post-Labor Day 2002: Bankers priced 27 IPOs of the year’s 85 IPOs. On the day that the Montpelier Re IPO was priced — Oct. 10, 2002 — the Nasdaq Composite Index closed at 1,114.11, DOWN 77.9 percent from 5,048.62 on March 10, 2000, its previous closing high.
 
Post-Labor Day Hero
eBay
(GMS: EBAY) (Quote, News & Chart), a San Jose-based provider of online marketplaces, priced 3.5 million shares at $18 each on Sept. 23, 1998. The stock opened the following morning at $53.50 — a moonshot. Since then, eBay has had a spectacular run. The original shareholders have seen their stock split four times, giving them an adjusted cost of 75 cents per share. On Sept. 5, 2008, eBay closed at $23.77, UP — you do the math.
 
Post-Labor Day 1998: Bankers priced 48 IPOs of the year’s 374 IPOs, but by then, the Internet bubble of “insanity.com” had been born. 
 
Post-Labor Day Goat
ViryaNet
(OTC: VRYA.PK) (Quote, News & Chart), a Jerusalem-based software provider, priced 4.5 million shares at $8 each on Sept. 19, 2000. The stock opened the following morning at $8.03. Since then, ViryaNet’s shares have seen a couple of reverse stock splits — a 1-for-10 in May 2002 and a 1-for-5 split in January 2007. The adjusted offering price would be about $400 per share. On Sept. 5, 2008, ViryaNet closed at $1.70, DOWN — you do the math.
 
Post-Labor Day 2000: Bankers priced 82 IPOs of the year’s 431 IPOs. By then, the Internet bubble had popped.
 
This brings us back to Fluidigm, 2008’s post-Labor Day deal. Expect more about it next week.