Three biotechs and one regional bank priced and began trading on Wednesday. None broke issue.
Only one of the four priced below the range, compared to 85% of IPOs that began trading in October.
Advanced Accelerator Applications (AAAP) popped 53%, giving it the best first-day performance for an IPO in the past three months. The diagnostics/therapeutics company had postponed an IPO in February, but reported positive Phase 3 results for its drug candidate in the third quarter. Parkinson's biotech Voyager Therapeutics (VYGR) priced below the range and popped 27% - a better debut than any IPO in nearly 60 days. The early-stage biotech boasts a strong collaboration with Genzyme and at least one case of improvement in the few Parkinson's patients it has treated. Small midwestern bank Equity Bancshares (EQBK) gained 6% (every 2015 bank IPO has a positive return), while preclinical biotech WAVE Life Sciences (WVE) traded up initially but ended the day at the offer price.
Two IPOs delay; two more scheduled for Friday trading
Fiber optic networking company Xtera Communications (XCOM) and large stem cell biotech Mesoblast (MESO) had been scheduled to price Tuesday night, but pushed back their IPOs. On Thursday morning, Xtera slashed its IPO terms by nearly half. The week's largest deal, online mortgage provider loanDepot (LDI), is set to raise $510 million for Friday trading. Instructure (INST), which could be the first software IPO since Rapid7 (RPD) in July, plans to raise $75 million at a nearly $500 million market cap.
Recent IPO performance significantly above year-to-date average
The 30 IPOs in the past 90 days average a 7% first-day pop and +2% in the aftermarket, for a total average return of 9%. Of the group, 73% trade above the offer price (though 23% have a less-than-5% gain), compared to just 43% for all 2015 IPOs. The 160 IPOs year-to-date average a +14% first-day gain but -15% in post-IPO trading, for an average loss of 3.5%.
Filing activity
Most companies only have seven more business days to submit an initial filing and go public this year, including those on our Private Company Watchlist. This week has already seen several companies join the US pipeline, including profitable high-growth software provider Atlassian (TEAM) and medical device maker SurgiQuest (SRGQ.RC).
Due to Thanksgiving, the IPO calendar likely contains all of the companies that will go public in November.
