August’s calendar has been a struggle. To date, 11 IPOs have been priced, according to the U.S. Securities and Exchange Commission filings. Of that number, investor demand was so lackluster that five were priced below their original filing ranges. Four were priced within range and two came to market after they were priced above range.
That’s the bad news.
Now for the good news: Bankers mostly got the prices right. Seven of the 11 IPOs closed their opening day in the winner’s circle, two did not, and the other two finished unchanged. The average gain for all 11 was 11.8 percent. And thanks to the stock market’s rebound from recent selloffs with Friday’s sharp rally, the major U.S. stock indexes finished the week with modest gains. The NASDAQ Composite Index gained 0.4 percent for the week and the S&P 500 rose 0.3 percent, while the Dow Jones Industrial Average advanced 0.4 percent.
This sets the stage for mid-August.
The IPO calendar lists five deals this week. Bankers expect to raise $240 million. That’s not much traffic, but vacation time is just around the corner.
One deal is a carryover from past weeks; two are small-cap offerings looking to raise $20 million each, and the other two are coming from the banking and pharmaceutical sectors.
Money Under the Sun
C1 Financial (BNK – proposed) operates 28 banking centers and one loan production office on the West Coast of Florida and in Miami-Dade and Orange Counties. The bank caters to entrepreneurs and their families, noting that the “C1” in its name stands for Clients 1st and Community 1st, according to its website. C1 Financial believes it is the 20th– largest bank in the state of Florida by assets and the 17th largest by equity. C1 Financial also says it is one of the fastest-growing banks in the country when measured by asset growth. It assets increased to $1.4 billion on March 31, 2014, from $260 million on Dec. 31, 2009.
(For more information, please click here: C1 Financial)
All Ears
Otonomy (OTIC – proposed) is a clinical-stage biopharmaceutical company focusing on the development and commercialization of innovative therapeutics to treat diseases and disorders of the ear. The company’s lead product candidate, AuriPro, is a sustained-exposure antibiotic. Otonomy has recently completed two identical Phase 3 clinical trials in 532 pediatric patients with middle ear effusion, or fluid, at the time of tympanostomy tube placement (TTP) surgery.
(For more information, please click here: Otonomy)
Looking into the week of Aug. 18, 2014, the calendar is “clean and green.” So vacation time is arriving in the land of IPOs.
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.