With printed jet engines, cakes and even organs on the horizon, excitement for 3D printing is climbing quickly. The latest public 3D printing player, a small German maker of large, industrial-use systems, had the second best debut of the year for a US IPO, jumping 121.5%. Voxeljet's return (VJET) was narrowly bested for the week, though, by CRM software provider Veeva Systems' (VEEV) 122.0% climb. Both deals were dwarfed in size by Plains GP Holdings' (PAGP) $2.8 billion offering, the largest IPO in more than a year. The week's proceeds put 2013 ahead of 2012's pace, leaving the year's total IPO proceeds just a sliver under $40 billion.
Two deals finish the week up 122%
Voxeljet had the sixth highest first-day gain since 2001 and was the first company since 1999 to double on its first day after pricing at the low end of its range. The company has sold machines to several major automakers, including BMW and Daimler, and it claims to have both the largest-volume and fastest-output 3D printer and the only continuous-printing model in the industry. Despite a decline in sales in the first half and selling on the deal by executives, voxeljet easily outperformed fellow 3D printing company ExOne's (XONE) 47% first-day gain in February. ExOne now trades at more than three times its IPO price.
Veeva Systems gained 86% on its first day of trading after pricing at $20, far above its initial $12 to $14 range. It is the leader in providing CRM software to the life sciences industry and counts many major pharmaceutical companies, including Bayer, Pfizer and Merck, as customers. Subscription revenue grew 116% to $34 million in the most recent quarter.
Plains GP raises $2.8 billion, trades flat
Plains GP Holdings, LP completed the largest IPO since Santander Mexico's $2.9 billion IPO in September 2012 but ended the week below its offer price (down less than 1%). The company owns 21% of the general partner interests in Plains All American Pipeline (PAA), one of the largest publicly traded midstream energy LPs.
| IPO pricings (week of October 14, 2013) | ||||
| Company (Ticker) | Business | Deal Size ($mm) | Price vs. Midpoint | Return as of 10/18 |
| Veeva Systems (VEEV) | Life sciences CRM software | $261 | 54% | 122% |
| voxeljet (VJET) | 3D printing | $85 | -7% | 122% |
| Springleaf Holdings (LEAF) | Subprime consumer loans | $358 | 6% | 19% |
| Plains GP Holdings, LP (PAGP) | Midstream energy assets | $2,816 | -6% | 0% |
Eight companies set terms
There were eight IPOs added to the IPO calendar last week. Half were health care companies, including Surgical Care Affiliates (SCAI), which operates the largest network of outpatient surgical facilities in the US. Two, 58.com (WUBA) and Qunar.com (QUNR), were Chinese internet companies, the first to launch since LightInTheBox's (LITB) $79 million IPO in June. While LightInTheBox is still up 16% from its IPO price, its share price was cut in half in August after it issued disappointing second quarter results and third quarter guidance. At the same time, 2012's Chinese internet IPOs YY (YY) and Vipshop (VIPS) have been wildly successful, trading up 424% and 1,077% from their offer prices. 58.com provides information on jobs, housing, used goods and other local services to 129 million unique monthly users. Qunar, a subsidiary of Baidu, lets consumers compare hotel and travel information. Brixmor Property Group (BRX), the second largest owner of community and neighborhood shopping centers in the US, launched last week's largest new deal, seeking $750 million.
| IPOs setting terms (week of October 14, 2013) | |||
| Company (Ticker) | Business | Deal Size ($mm) | LTM Sales ($mm) |
| Brixmor Property Group (BRX) | Shopping center REIT | $750 | $1,145 |
| Surgical Care Affliliates (SCAI) | Surgery facilities | $220 | $769 |
| Sprague Resources LP (SRLP) | Petroleum products | $170 | $4,473 |
| 58.com (WUBA) | Chinese online marketplace | $154 | $107 |
| Qunar Cayman Islands (QUNR) | Chinese hotel/travel comparison | $117 | $107 |
| Aerie Pharmaceuticals (AERI) | Glaucoma treatments | $68 | $0 |
| Veracyte (VCYT) | Cancer diagnostics | $66 | $17 |
| Ruthigen (RTGN) | Surgery-related infections | $20 | $0 |
Most filings in October since 2000
Although the five new filings last week represented a sharp decline following three straight weeks with ten or more, they were enough to push the month's total to 25, a post-tech bubble record for October. Three of the new filers were small health care companies. Nimble Storage (NMBL), which filed for a $150 million IPO, manufactures flash-optimized, hybrid storage for over 1,750 end customers. Sales increased 165% to $51 million in the first half.
| New IPO filers (week of October 14, 2013) | |||
| Company (Ticker) | Business | Deal Size ($mm) | LTM Sales ($mm) |
| Navigator Holdings (NVGS) | Liquefied gas carriers | $200 | $183 |
| Nimble Storage (NMBL) | Flash storage | $150 | $85 |
| TetraLogic Pharmaceuticals (TLOG) | Cancer therapeutics | $104 | $0 |
| Oxford Immunotec Global (OXFD) | Tuberculosis diagnostics | $86 | $29 |
| Egalet (EGLT) | Pain treatments | $69 | $0 |
IPO market snapshot
The 169 IPOs in 2013 have raised $40.0 billion and produced an average return of 39%. There have been 70 IPOs in the past 90 days, with total proceeds of $18.0 billion and an average return of 30%. The active IPO pipeline includes 121 companies looking to raise a total of $34.2 billion.
