IPO Market Blog

Market Commentary and Analysis... Straight from the Pros

IPO Action: A Mouth-Watering IPO Menu

Written by John Fitzgibbon on Jan 25th, 2015

Shake Shack got a humble start in 2001 when it rolled a hot dog cart into New York City’s Madison Square Park. Reportedly, it was an instant hit. Lines formed daily throughout the summer months and Shake Shack was off to meet its future. In 2004, Shake Shack officially opened, and over the last 10 years, it has experienced rapid growth. The company has about 63 Shake Shacks in nine countries and 34 cities. In addition, the company plans to open at least 10 new domestic company-operated Shake Shacks each year. It believes over the long term that it has the potential to grow to at least 450 Shacks in new and existing markets.

 

An American Classic

But first ...

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Categories: Market Commentary
Tags: buzz , commentary , ipo , market , news

IPO Action: In and Out of The Box

Written by John Fitzgibbon on Jan 19th, 2015

On March 24, 2014, Box filed with the U.S. Securities and Exchange Commission for an IPO to raise $250 million. Its timing was not the best. The fortunes of the cloud-based stocks had topped out and were beginning to tank. Consider the following:

 

  • Castlight Health (CSLT) was to fall 71 percent to close at $11.54 on May 5, 2014, DOWN from $39.80 on March 3, 2014.

  • Q2 (QTWO) was to fall 68.9 percent to close at $10.03 on May 9, DOWN from $16.92 on March 21.

  • Veeva Systems (VEEV) was to fall 51.8 percent to close at $18.23 on May 9, DOWN from $37.80 on March 14.

  • Paylocity Holding (PCTY) was ...

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Categories: Market Commentary
Tags: buzz , commentary , ipo , market , news

IPO Action: Cranking Up the IPO Calendar

Written by John Fitzgibbon on Jan 11th, 2015

Let’s look at recent history:

  • 2014: The first IPO started trading Jan. 10; six more followed the week of Jan. 13, 2014 - mid-January.

  • 2013: The first IPO began trading Jan. 15 - mid-January.

  • 2012: The first IPO made its debut Jan. 19 – mid-January.

  • 2011: The first IPO started trading Jan. 13 - mid-January.

Now let’s move back to 2015 and revisit last week. On Tuesday, Jan. 6, two companies - Patriot National (PN – proposed) and Sutherland (SLD – proposed) - announced plans for their IPOs. Both will be priced on Thursday, Jan. 15, after the close. They will start trading on Friday, Jan. 16.

 

Two more companies joined the IPO calendar on Friday, Jan 9: County Bancorp (ICBK – proposed) and Box (BOX – proposed ...

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Categories: Market Commentary
Tags: buzz , commentary , ipo , market , news

IPO Action: Best Year for IPOs Since 2000

Written by John Fitzgibbon on Jan 4th, 2015

The SEC’s filings showed 285 IPOs were priced during the year. They raised $85.5 billion. These figures include unit offerings consisting of common stock and warrants.

 

(Note: Other services have reported or will report other numbers, but Syndicate Pro excludes bank conversions; “best efforts” offerings; closed-end funds, and foreign companies pricing public offerings of American Depositary Shares (ADS) being offered for the first time in the U.S. capital markets. The ADS represent shares already being traded in their country of origin.)

 

Granted, 2014’s numbers were impressive. Worth repeating: In 2014, 285 initial public offerings were priced. Those stats make 2014 the busiest IPO year since 2000, when 433 IPOs were priced. They raised $99.8 billion ...

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Categories: Market Commentary
Tags: buzz , commentary , ipo , market , news

IPO Action: When Price Predicts Performance

Written by John Fitzgibbon on Dec 28th, 2014
In short, all you need to know about an IPO’s opening-day performance can be found on the cover page of its final prospectus.
 
There are only three ways to price an IPO: (1)below its original terms;(2)within its original range;(3)above its original range.
 
Each type of pricing usually affects an IPO’s performance on its first day of trading. Compare the IPO’s final offering terms with its original pricing terms.
 
Let’s take a look at 2014.
 
For the record, 268 IPOs were priced during 2014, according to the U.S. Securities and Exchange Commission filings.
 
(Note: Other services have and will report other numbers, but Syndicate Pro excludes bank conversions; best efforts offerings ...
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Categories: Market Commentary
Tags: buzz , commentary , ipo , market , news

IPO Action: Getting in the Holiday Spirit

Written by John Fitzgibbon on Dec 21st, 2014

With a nod to Frank Sinatra, this was indeed a very good year for IPOs. The 2014 calendar also closed on schedule. Let’s take a quick look.

 

2014

Number of IPOs: 268  

Volume raised: $83.8 billion

(Note: The number of IPOs priced exclude bank conversions; best efforts offerings; closed-end funds; foreign companies pricing public offerings of American Depositary Shares (ADS) being offered for the first time in the U.S. capital markets.(Note: These ADS represent shares already being traded in the country of origin); and unit offerings consisting of common stock and warrants.)

The NASDAQ Composite Index closed on Friday, Dec. 19, at 4,765.38, UP 14.1 percent for the year.

The Last IPO of ...

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Categories: Market Commentary
Tags: buzz , commentary , ipo , market , news

IPO Action: Going Out with a Biopharma Bang

Written by John Fitzgibbon on Dec 14th, 2014

Yes, the word out there is that these two deals are expected to finish the IPO year with a bang: Bellicum Pharmaceuticals (BLCM - proposed) and Juno Therapeutics (JUNO – proposed). Let’s take a closer look at the pending dynamic duo.

 

Cell-to-Cell Combat

Bellicum Pharmaceuticals, based in Houston, is a clinical-stage biopharmaceutical company focused on discovering and developing novel cellular immunotherapies for various forms of cancer, including both hematological cancers and solid tumors, as well as orphan inherited blood disorders.

 

One of Bellicum’s leading product candidates, BPX-501, is designed to eliminate the risk of Graft versus Host Disease in patients who have undergone stem cell transplants for leukemia and other types of cancer. Bellicum is also developing a vaccine for ...

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Categories: Market Commentary
Tags: buzz , commentary , ipo , market , news