The Week in IPOs: Review of Last Week, Preview of the Week Ahead

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Initial public offerings (IPOs) continue to flourish in 2014, particularly for new biotech and pharmaceutical firms. Some seven firms in areas related to drugs and medicines held IPOs last week, on top of eight such IPOs in the previous week. The pace may be slowing down, however. We note only one IPO on tap so far for next week, and it is an energy company.

Here’s a look at two IPOs from last week that were not biotech firms and three of the biotech IPOs.

Talmer Bancorp Inc. (NASDAQ: TLMR) raised $210 million in its Wednesday IPO of 15.6 million shares. The IPO price was $13.50, near the low end of the expected range of $13 to $15. The company offers commercial and retail banking at 94 branches and 13 lending office primarily in the Midwest. The stock closed at $13.80 on Wednesday and $13.95 on Friday.

Installed Building Products Inc. (NYSE: IBP) launched its IPO on Thursday after cutting the number of shares from 9 million to 7.5 million and dropping the price to $11, well below the expected range of $14 to $16. The company is the country’s second-largest installer of home insulation for new houses and also installs garage doors, rain gutters, and other items. Shares closed at $12.80 on Thursday and $13.00 on Friday.

Concert Pharmaceuticals Inc. (NASDAQ: CNCE) sold 6 million shares in its Thursday IPO at $14 a share, the high end of its expected range of $12 to $14. The company added 1 million shares to its original plan to sell 5 million shares. Concert is a development stage biotech firm working on a variety of therapies. Shares closed at $24.85 on Thursday and at $14.07 on Friday.

Eagle Pharmaceuticals Inc. (NASDAQ: EGRX) held its IPO on Wednesday. The company focuses on developing injectable products primarily the areas of critical care and oncology. The company offered 3.35 million shares at $15 a share, the midpoint of its expected range of $14 to $16. At that price the company has a market value of around $216 million. Shares closed at $12.83 on Wednesday and at $12.80 on Friday.

Amedica Corp. (NASDAQ: AMDA) is a medical device maker that began trading on Thursday. The IPO offered 3.5 million shares at a price of $5.75 a share, a far cry from the expected range of $10 to $12. Underwriters have a 30-day option on an additional 525,000 shares. Shares closed at $5.39 on Thursday and at $5.68 on Friday.

Other IPOs in the past week include Flexion Therapeutics Inc. (NASDAQ: FLXN), Boulevard Acquisition Corp. (NASDAQ: BLVDU), a blank-check company; NephroGenex (NASDAQ: NRX), and Inogen Inc. (NASDAQ: INGN). Semler Scientific Inc. was scheduled to begin selling stock on Friday, but the IPO was apparently delayed.

Next week’s only scheduled IPO is Sundance Energy Australia, an onshore oil and gas E&P operating in Texas, Oklahoma, Colorado and North Dakota. The Colorado-based company plans to raise $136 million by offering 7.75 million American Depositary Shares (ADS) at a price range of $16.50 to $18.50. At the midpoint of the proposed range, Sundance Energy Australia would command a fully diluted market value of $542 million. Each ADS is equal to 20 ordinary shares. The company is already traded on the Australian Stock Exchange under the ticker symbol ‘SEA’. The ADS will trade on the Nasdaq under the ticker symbol ‘SNDE’.

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