The IPO Buzz: July’s IPO Steamroller

Another 24 IPOs are on tap for the rest of the month that could raise another $5.9 billion. That would bring the total for July 2014 to 37 IPOs that could raise $7.1 billion. And guess what? There is still time to add to this traffic.
The busiest July in recent history came in 2000 when the calendar produced 42 IPOs that raised $8.6 billion. The busiest July on record was in 1986 when 79 IPOs made their debuts to raise $1.7 billion, according to the U.S. Securities and Exchange Commission filings.
Some Thrive, Others Get By
To summarize July 2014, the healthcare sector is in play, but it is not a slam dunk for investors. Six of the 13 IPOs this month are from this sector, but the market is clearly selective.
Two of the six were priced above their original filing ranges and closed on Friday, July 18, with an average gain of 60.4 percent. iRadimed (IRMD) was UP 40.8 percent from its initial offering price and Sage Therapeutics (SAGE) was UP 67.2 percent from its initial offering price. iRadimed priced its IPO of 2 million shares at $6.25 each, up from a filing of 1.75 million shares at $5 to $6 each, and Sage priced its IPO of 5 million shares at $18 each, up from a filing of 14 million shares at $14 to $16 each.
The lesson is: “Buyer, beware.” Not all healthcare IPOs skyrocket in the aftermarket.
The other four healthcare IPOs had to be cut in size to meet limited investors’ demand. Most got a “dead cat bounce” and traded at a premium above their reduced offering prices. The four were UP an average 4.37 percent from their IPO prices.
Food, Power and Digi-Pop Media
This week’s calendar continues to be heavy with healthcare IPOs. Eight of the 14 fall into this sector. But the “IPOs of Interest” are from other sectors, according to a consensus of IPO players. They are El Pollo Loco Holdings (LOCO – proposed), Spark Energy (SPKE – proposed) and Townsquare Media (TSQ – proposed).
El Pollo Loco Holdings is a Costa Mesa, California-based restaurant chain that specializes in fire-grilled citrus-marinated chicken. The name, translated from Spanish, is “The Crazy Chicken.” El Pollo Loco Holdings operates 401 restaurants, including 168 company-operated and 233 franchised restaurants as of March 26, 2014.
(For more information, please click here: El Pollo Loco Holdings)
Spark Energy is a Houston-based retail energy services company that gives residential and commercial customers an alternative choice of where to buy their natural gas and electricity. Spark purchases its natural gas and electricity supply from a variety of wholesale providers and bills its customers monthly for the delivery of natural gas and electricity based on their consumption at either a fixed or variable price. Spark Energy serves customers from California to New York. The company plans to pay a quarterly dividend of 36.25 cents per share, at a rate of $1.45 per share on an annualized basis, to yield 7.25 percent at the mid-point of its price range.
(For more information, please click here: Spark Energy)
Townsquare Media is a Greenwich, Connecticut-based media and entertainment company that owns and operates more than 300 radio stations as well as digital and social media properties and live events in small and mid-sized markets across the United States. The company is in an exclusive partnership with Just Jared, a celebrity gossip website. Townsquare Media’s online outlets include, which covers music and entertainment. The Taste of Country Music Festival at Hunter Mountain, New York, is among its live events. Townsquare Media’s integrated and diversified product and service offerings enable local, regional and national advertisers to target audience engagement across multiple platforms, including on air, online and live events.
(For more information, please click here: Townsquare Media)
Looking into the week of July 28, 2014, the calendar has 10 deals planning to raise about $4.5 billion. But more names could pop onto the calendar by the time that Monday, July 28, rolls around.
Stay tuned.
Disclosure: Neither the author nor anyone else on the staff has a position in any stocks mentioned, nor do we trade or invest in IPOs. The author and staff do not issue advice, recommendations or opinions.