Three companies priced US IPOs last week, while the fourth (and largest) expected deal, Colony American Homes (CAHS), was postponed. Two of the priced deals, Textura (TXTR) and LightInTheBox (LITB), gained more than 30%, but the third, RCS Capital (RCAP), ended the week 3% below its offer price. Two biotechs launched deals, and eight companies, half of which plan to raise more than $300 million, made initial IPO filings.
| IPO pricings (week of June 3, 2013) | ||||
| Company (Ticker) | Business | Deal Size ($mm) | Price vs. Midpoint | Return |
| LightInTheBox (LITB) | Chinese online retailer | $79 | 0% | 32% |
| RCS Capital (RCAP) | Broker-dealer for REITs | $50 | 0% | -3% |
| Textura (TXTR) | Construction project software | $75 | 7% | 39% |
LightInTheBox is first Chinese company to list in the US since YY
LightInTheBox, which sells China-made products to consumers in Europe and the US, was the first IPO from a Chinese company in 2013, despite the tremendous success of the two US IPOs from China in 2012, Vipshop (VIPS) and YY (YY). Vipshop, another e-commerce company, is the best performing IPO since November 2011, having quadrupled in price; YY, a social platform, is up 174%. Textura had the latest strong debut from a software company, rising 39% on its first day of trading on Friday. It has sold to 41 of the top 100 contractors in North America, and its sales are growing at 50%+. Colony American Homes was the first company since mid-April to postpone an IPO.
| IPOs setting terms (week of June 3, 2013) | |||
| Company (Ticker) | Business | Deal Size ($mm) | LTM Sales ($mm) |
| bluebird bio (BLUE) | Early-stage biotech | $75 | $1 |
| China Commercial Credit (CCCR) | Microcredit in China | $18 | $12 |
| PTC Therapeutics (PTCT) | Late-stage biotech | $100 | $29 |
With biotechs attracting big returns, two more launch deals
Following Epizyme’s 53% first-day gain in the prior week (it is now up 73%), bluebird bio (BLUE) and PTC Therapeutics (PTCT), both development-stage biotechs, set terms. PTC Therapeutics first filed for an IPO in 2006 but withdrew in 2007. It has a drug candidate for muscular dystrophy and cystic fibrosis in Phase 3 trials. Backed by Third Rock Ventures, bluebird bio is developing therapies for genetic and orphan diseases.
| New IPO filers (week of June 3, 2013) | |||
| Company (Ticker) | Business | Deal Size ($mm) | LTM Sales ($mm) |
| American Homes 4 Rent (AMH) | Residential REIT | $1,250 | $11 |
| Athlon Energy (ATHL) | Oil and gas E&P | $345 | $179 |
| Cellular Dynamics International (ICEL) | Cell manufacturing | $57 | $8 |
| China Commercial Credit (CCCR) | Microcredit in China | $18 | $12 |
| Volaris Aviation (VLRS) | Mexican airline | $100 | $1,011 |
| Graña y Montero (GRAM) | Engineering/construction | $460 | $2,086 |
| NRG Yield (NYLD) | Energy assets | $400 | $184 |
| Tecogen (TGEN) | Utility systems | $25 | $16 |
Three foreign deals among eight added to the pipeline
For the second consecutive week, two foreign companies with more than $1 billion in sales filed for US IPOs. Graña y Montero is Peru’s largest engineering and construction company, and Volaris Aviation is a low-cost airline based in Mexico. The day before Colony American Homes postponed its deal, another REIT that leases single-family properties, American Homes 4 Rent, filed for a $1.3 billion IPO. Backed by Apollo, Athlon Energy (ATHL) is the second E&P to file this year, after Jones Energy (JONE) filed in the prior week.
IPO market snapshot
The 77 IPOs in 2013 have raised $17.2 billion and produced an average return of 19%. There have been 55 IPOs in the past 90 days, with total proceeds of $11.3 billion and an average return of 19%. The active IPO pipeline includes 111 companies looking to raise $32.6 billion.
