Last Week’s IPOs: Winners and Losers

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The last week saw one huge success in the initial public offering (IPO) market, a few modest successes and a couple of losers. Because there is just one IPO scheduled for the holiday-shortened week ahead, we thought we would take a look back at the IPOs from last week rather than do our usual preview.

The big story last week was Chinese online direct retailer JD.com Inc. (NASDAQ: JD), which began trading Thursday morning at an opening price of $22.07 a share, after selling 93.7 million American Depositary Shares (ADSs) at an IPO price of $19 per ADS. The stock priced above its expected range of $16 to $18 as investor demand exceeded available shares by a factor of 15. One ADS equals two Class A ordinary shares.

This was the largest U.S. IPO for a Chinese company in 10 years. JD.com raised $1.8 billion in its IPO, and another $1.2 billion in a concurrent private placement with China’s Tencent Holdings.

Oil and gas exploration and production company Parsley Energy Inc. (NYSE: PE) struck Wall Street oil Friday morning after an IPO of 50 million shares. The offering priced at $18.50, above the expected range of $16 to $18, and the number of shares sold was raised from the original planned offering of 43.9 million shares. Parsley raised $925 million in the IPO.

SunEdison Semiconductor Pte. Ltd. (NASDAQ: SEMI), a spin-off from solar panel maker SunEdison Inc. (NYSE: SUNE), began trading Thursday morning, after selling 7.2 million shares at an initial public offering price of $13, the low end of the expected range of $13 to $15 a share.

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Heritage Insurance Holdings Inc. (NYSE: HRTG), a property and casualty insurance holding company, sold 6 million shares of its common stock at a price to the public of $11.00 per share. The price was nearly 30% below the expected range, but the stock closed the week up about 4.5% at $11.50.

Agile Therapeutics Inc. (NASDAQ: AGRX), a women’s health specialty pharmaceutical company focused on the development and commercialization of new prescription contraceptive products, sold 9.2 million shares of its common stock at an IPO price of $6.00 per share, more than 50% below the mid-point of the expected range. Insiders purchased $25 million on the offering, up from an expected $15 million, and the IPO raised $55 million.

Two IPOs were postponed:

21st Century Oncology Holdings, an integrated network of cancer care centers and affiliated physicians, had planned to sell 13.3 million shares in an expected range of $14 to $16 a share. The IPO has been withdrawn due to poor market conditions.

First Foundation, a wealth manager and commercial bank, planned to offer 2.2 million shares at an expected price of $21 to $24 a share. The IPO has been rescheduled for the coming week. The stock will trade on the Nasdaq under the ticker symbol FFWM.

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