Six companies went public Wednesday as 2014 reached a milestone of over 200 IPOs, the most since 2000 and a 41% increase over last year. With nearly 20 IPOs on the calendar, we should soon surpass 2013's total IPO count of 222. This year's IPOs have raised $67 billion (helped by Alibaba's $22 billion deal), already 23% more than all of 2013.
Six diverse deals see mixed trading
Wednesday's group saw mixed trading, with CyberArk Software (CYBR) coming out on top. The company spiked 87% on its first day after pricing above the range. The Israel-based IPO provides enterprise software that detects unusual activity by users with high levels of system access - often the targets of cyber attacks.
Citizens Financial (CFG) priced below its range to raise $3 billion and represents the second-largest IPO of 2014, behind Alibaba (BABA) and ahead of July IPO Synchrony Financial (SYF). It is the ninth $1+ billion IPO of the year.
Israel Chemicals, which trades on the Tel Aviv Stock Exchange, listed its shares in a US IPO that raised $421 million but remained largely unchanged throughout the day. Smart & Final Stores (SFS), backed by May IPO Ares Management (ARES), traded up during the day but ended flat. The day's biotech, Vitae Pharmaceuticals (VTAE) slashed its range and still broke issue. The worst performer, Medley Management (MDLY), priced below the range and fell 9% in its first day.
| 6 IPOs began trading on September 15, 2014 | ||||
| Company (Ticker) | Business | Deal Size ($mm) | IPO Price vs. Midpoint | First day pop (9/24) |
| CyberArk Software (CYBR) | Security enterprise software |
$86 | 14% | 87% |
| Citizens Financial (CFG) | RBS bank spinoff; 13th largest US bank | $3,010 | -10% | 7% |
| Israel Chemicals (ICL)* |
Israeli fertilizer producer |
$421 | -6% | 2% |
| Smart & Final Stores (SFS) | Ares-backed western US grocer | $161 | -8% | 0% |
| Vitae Pharmaceuticals (VTAE) | Biotech: Diabetes and Alzheimer's |
$55 | -33% | -5% |
| Medley Management (MDLY) | Asset manager with $3.3B AUM |
$108 | -14% | -9% |
2 large IPOs set to trade on Thursday
Two more IPOs will begin trading Thursday. CONE Midstream Partners LP (CNNX) was formed by CONSOL Energy (NYSE: CNX) and Noble Energy (NYSE: NBL) to own natural gas pipelines in the Marcellus Shale. The company priced above the range, raising $385 million. MLPs have generally been well-received by IPO investors this year.
Travelport (TVPT), which offers booking support services to the airline industry, raised $480 million by pricing at the high end of the range. Backed by Blackstone (NYSE: BX), it operates the third largest global distribution system by market share, behind Amadeus IT and April IPO Sabre (SABR).
A third IPO, Vantage Energy (VEI), had planned to raise $600 million but postponed the offering citing market conditions as Marcellus Shale plays have traded off recently.
Could 2014 reach 300 IPOs?
Last year, 32% of IPOs were in the fourth quarter. Assuming the same rate of issuance in 2014, the projected year's total comes to 300 IPOs. With 137 IPOs in the active pipeline and an unknown number that have filed confidentially, that possibility remains within reach.
