The IPO Flood: A Big Week Behind Us, Another Big Week Ahead

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The week ending November 15th saw no less than 6 new names added to public equity markets and the coming week is set to add several more entrants which have scheduled initial public offerings (IPO).

There were some big winners and at least one loser last week. The most disappointing IPO of last week had to be Chegg Inc. (NYSE: CHGG). The only good thing to say about this is that the company got its money — investors will have to wait for theirs.

Houghton Mifflin Harcourt Co. (NASDAQ: HMHC) went out Thursday at an IPO price of $12, below the expected range of $14 to $16, but the shares closed the first day’s trading at $15.86 and rose to a high of $17.50 on Friday before closing up about 1.6% at $16.11. Unfortunately for the company all the proceeds from the offering went to existing shareholders like Paulson & Co. which bought the company out of bankruptcy about 2 years ago.

Extended Stay America Inc. (NYSE: STAY) held its IPO on Wednesday and 28.25 million shares were sold at $20 each, near the top of the expected range of $18 to $21. Shares closed at $23.77 and have posted a high of $24.12 since. This is another company that was resurrected from bankruptcy by private equity, but in this case all the proceeds went to the company. Blackstone Group LP (NYSE: BX), Paulson & Co., and Centerbridge Partners LP remain the majority owners with a stake of about 86%.

Zulily Inc. (NASDAQ: ZU) priced its Friday IPO at $22 a share, above the expected range of $18 to $20 and the stock soared to close up nearly 72% at $37.70. The e-commerce and daily deals website for moms is a dual-stock company, with Class B shares getting 10 votes per share and Class A shares getting one per share. All the Class B stock is held by insiders and they will control 99% of the voting power in the company.

A liquefied natural gas (LNG) shipper, Dynagas LNG Partners LP (NASDAQ: DLNG) priced its Wednesday offering of 12.5 million shares at $18. After beginning to trade at below $17 a share, the stock closed at $18 on Wednesday after what looks like a last-minute flurry of buying action. Shares closed Friday at $18.02.

Clinical stage biopharmaceutical firm Relypsa Inc. (NASDAQ: RLYP) sold 6.85 million shares at an IPO price of $11 on Friday. The stock closed the day up 9.7% at $12.07.

Insulin pump maker Tandem Diabetes Care Inc. (NASDAQ: TNDM) sold 8 million shares on Thursday at an IPO price of $15. The stock began trading at around $19 before closing about flat to the opening bid and then shooting up more than 13% on Friday to close at $21.84.

Next week another LNG shipper, Navigator Holdings Ltd. is expected to hold its IPO on Thursday. The company plans to offer 11.3 million shares in a price range of $17 to $19. The stock will trade on the NASDAQ under the ticker symbol “NVGS.”

Contemporary clothing maker Apparel Holding Corp. will change its name to Vince Holding Corp. before its planned IPO on Friday and trade on the NYSE under the ticker symbol “VNCE.” The company plans to offer 10 million shares in an expected range of $17 to $19 a share.

TetraLogic Pharmaceuticals Inc. plans to sell 6.4 million shares in a price range of $13 to $15 in its Thursday IPO. The stock will trade on the Nasdaq under the symbol “TLOG.”

Luxembourg-based GFI Software SA intends to offer 6.1 million shares in a price range of $12 to $14 in its Friday IPO. The stock will trade on the Nyse under the ticker symbol “GFIS.”

U.K.-based Oxford Immunotec Global PLC plans to offer 5.4 million shares at $13 to $15 a share on Friday. The stock will trade on the Nasdaq under the ticker symbol “OXFD.”

Next week may be the last of the recent flood of IPOs for a while. The IPO market typically cools off following Thanksgiving and doesn’t pick up again until February. The market for IPOs has been so hot, though, we might see a bit of shift in the historical pattern this year.

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