Three companies priced their IPOs this week raising $289 million.
Technology-driven real estate brokerage Redfin and dermatology biotech Sienna Biopharmaceuticals both soared over 25% in their debuts. RBB Bancorp, a commercial bank focused on Asian immigrants, experienced more muted trading and it closed Friday within the offering range.
This week closed out the slowest July since the financial crisis, with only nine deals able to price, though YogaWorks (YOGA) also tried.
| 3 IPOs During the Week of July 24th, 2017 | |||||
| Issuer Business |
Deal Size ($mm) |
Market Cap at IPO ($mm) |
Price vs. midpoint |
First day return |
Return at 6/23 |
| Refin (RDFN) | $138 | $1,316 | +15.4% | +44.7% | +44.7% |
| Internet-driven discount real estate brokerage. |
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| Sienna Biopharmaceuticals (SNNA) |
$65 | $317 | 0% | -28.3% | +30.3% |
| Clinical-stage biotech developing topical therapies for dermatological conditions. |
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| RBB Bancorp (RBB) |
$86 | $390 | 0% | +1.5% | +2.0% |
| California commercial bank focused on serving first-generation Asian immigrants. |
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Redfin (RDFN), an internet-driven discount real estate brokerage, priced its $138 million IPO at $15, above the $12 to $14 range and finished Friday up 45%. Investors were likely attracted to its strong growth profile, it has grown revenue more than 40% for several years while improving margins, with plenty of room to grow in the fragmented multi-billion dollar brokerage industry.
Sienna Biopharmaceuticals (SNNA), a biotech developing topical therapies for dermatological conditions, raised $65 million after pricing at the midpoint. It went on to finish the week up 30%. The clinical-stage company had positive results in a Phase 2b trial, but faces significant competition from generics, OTC and new drugs. Insiders had indicated an interest in purchasing up to $25 million (38%) of the deal.
RBB Bancorp (RBB), an Asian immigrant-focused commercial bank, priced at the midpoint and raised $86 million. It has steadily improved its efficiency ratio ten points to 41% since 2014, but loan volume slipped in the 1Q despite rising deposits.
IPO Market Snapshot
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