Two of the four IPOs on Thursday broke issue after pricing below the range. Less than a quarter of IPOs in the past three months have traded down on the first day.
The top performer, Intersect ENT (XENT), priced at the low end and gained 18%. The company boasted impressive backers, high growth and more nasal implants in the pipeline. Immune Design (IMDZ), an early-stage biotech focused on immunotherapy to treat cancer, priced at the low end of the range and remained there by the end of the day.
Townsquare Media (TSQ), which operates 312 radio stations in mid-sized markets, priced 27% below the midpoint and ended the day down 7%. The company was brought out of bankruptcy by Oaktree Capital in a 2010 LBO. Radio stations, like newspapers, have struggled to maintain market share when competing with digital media. Pfenex (PFNX) was priced 54% below the midpoint and then fell 12%. It targets the lucrative wet AMD market, but the company is several years away from receiving FDA approval.
Wednesday's microcap IPO Medical Transcription Billing (MTBC) also broke issue after pricing at half of the original range. It and Pfenex are among the year's highest-discounted offerings.
| Thursday IPOs | ||||
| Company (Ticker) | Business | Deal Size ($mm) | IPO Price vs. Midpoint | First Day Pop |
| Intersect ENT (XENT) | Absorbable nasal implants | $55 | -8% | 18% |
| Immune Design (IMDZ) | Biotech: Immunotherapy for cancer | $60 | -8% | 0% |
| Townsquare Media (TSQ) | Oaktree-backed radio stations | $92 | -27% | -7% |
| Pfenex (PFNX) | Biotech: Wet AMD eye therapy | $50 | -54% | -12% |
