The IPO Buzz: Tech IPOs Are Back In Style

The LINE Corporation (LN) IPO lived up to all of its early billing – and more. The deal was priced in Tokyo on Monday at 3,300 yen (US$32.84) and opened on the New York Stock Exchange on Thursday morning at US$42, UP 27.9 percent from its IPO price. That sparked a question from the financial media: “Will this open the gates for tech IPOs?”

Look again. The gates are already open.

The Best of 2016

As of the close on Friday, July 15, the two top IPO aftermarket performers for this year are from this sector: Technology. That’s right – technology. Check it out here: 2016 Pricings and then click on the “Return” button, second column from the right to align performances. You will find:

No. 1 is Twilio (TWLO).

On June 22, Twilio priced its IPO at $15 per share. It closed Friday, July 15, at $43, UP 186.7 percent from its IPO price.

No. 2 is Acacia Communications (ACIA).

On May 12, Acacia priced its IPO at $23 per share. It closed Friday, July 15, at $54.78, UP 138.2 percent from its IPO price.

Worth noting: The NASDAQ Composite Index (the barometer of the IPO market) managed to finish last week on the plus side for the year. It closed Friday, July 15, at 5,029.59, UP 0.4 percent from 5,007.41, its close on Dec. 31, 2015. The NASDAQ is UP 17.9 percent from 4,266.84, its 2016 closing low on Feb. 11.

Silicon Valley is reportedly loaded with IPO candidates. The unicorns are there and the private equity firms know the sun does not shine forever in the IPO skies. A lot of signs are coming together to indicate better times ahead for tech IPOs.

Dutch Drug Maker on the Dance Card

This week has four new faces at the IPO window. One is a technology company, but the favorite among the IPO players is Patheon N.V. (PTHN – proposed).

Patheon, based in Amsterdam, is a global provider of outsourced pharmaceutical development and manufacturing services offering a comprehensive, integrated and highly customizable range of active pharmaceutical ingredients and finished drug product services to its customers. Patheon’s clients include 18 of the 20 biggest biotech companies in the world, according to its prospectus. JLL Partners, a New York-based private equity firm, is the majority shareholder.

Bankers plan to price 30.5 million ordinary shares at $19 to $22 each on Wednesday evening, July 20, to trade Thursday morning, July 21, 2016.

Gene Therapy, RFID Player and Wind Energy

Rounding out the list of new faces at this week’s IPO widow are: Audentes Therapeutics (BOLD – proposed), IMPINJ (PI – proposed) and TPI Composites (TPIC – proposed).

Audentes Therapeutics, based in San Francisco, is a biotechnology company focusing on developing and commercializing gene therapy products for patients suffering from life-threatening rare diseases caused by defects in a single gene.

Bankers plan to price 5 million shares at $14 to $16 each on Wednesday evening, July 20, to trade Thursday morning, July 21.

IMPINJ, based in Seattle, is a manufacturer of radio-frequency identification devices (RFID) and software. The company’s platform connects billions of everyday items such as apparel, medical supplies, automobile parts, driver’s licenses, food and luggage to applications such as inventory management, patient safety, asset tracking and item authentication, delivering real-time information to businesses about items they create, manage, transport and sell.

Bankers plan to price 4.6 million shares at $12 to $14 each on Wednesday evening, July 20, to trade Thursday morning, July 21.

TPI Composites, based in Scottsdale, Arizona, believes it is the largest U.S.-based independent manufacturer of composite wind blades. It has developed a global footprint to serve the growing wind energy market worldwide.

Bankers plan to price 7.25 million shares at $15 to $17 each on Wednesday evening, July 20 to trade Thursday morning, July 21.

Looking into the week of July 25, the calendar has two deals at press time. But anything could happen on Monday morning, which could set the stage for the following week.

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 opinion.