Investing

IPO Count, Proceeds Doubled Quarter-Over-Quarter in Q2

initial public offering
Source: Thinkstock
The short week ahead of the Independence Day holiday saw just four initial public offerings (IPOs). That was a lot better than this week, when there are no IPOs on the calendar.

The good news is that we now have a chance to look back at the IPO action for the second quarter. IPOs in the second quarter more than doubled compared with the first quarter of 2015, which posted a two-year low. First, though, a look at what happened last week.

CNX Coal Resources L.P. (NYSE: CNXC) raised $75 million in its delayed IPO, selling 5 million partnership units at $15 each. We have more to say about CNX Coal Resources in another story.

ConforMIS Inc. (NASDAQ: CFMS) raised $135 million, selling 9 million shares at an IPO price of $15 a share. Trading opened Wednesday at $18, and the stock popped 36% that day and closed at $23.50 on Thursday. The company develops, manufactures and sells joint replacement implants.

Telehealth platform provider Teladoc Inc. (NYSE: TDOC) sold 8.3 million shares at $19 a share, well above the expected range of $15 to $17 and also above the planned total of 7 million shares. Shares opened for trading at $29.95 on Wednesday, but closed Thursday at $28.00.

Natera Inc. (NASDAQ: NTRA) also had a solid opening day, selling 10 million shares at an IPO price of $18, both above the expected totals. After a first day pop of 26%, shares closed Thursday at $22.74.

ALSO READ: 4 Utilities Deutsche Bank Loves for Their High Yields

There were 70 IPOs in the second quarter of 2015, and the monthly totals rose in each month. There were 15 IPOs in April, 20 in May and 35 in June, the highest June total in nine years. A total of $12.7 billion in proceeds were raised from the quarter’s IPOs, more than double the $5.5 billion first-quarter total, and the median deal size was just over $100 million, well above the $82.3 million median in the first quarter.

The largest deal of the quarter — and of the year to date — was Tallgrass Energy G.P. L.P. (NYSE: TEGP), which posted gross receipts of $1.2 billion. A total of eight energy IPOs in the second quarter raised $3.3 billion, well more than double the $1.2 billion first-quarter total.

The best-performing IPO of the second quarter was Seres Therapeutics Inc. (NASDAQ: MCRB), which had a first-day pop of about 186% and total return of 122.8%. The worst performing IPO of the quarter was another health care stock, Apigee Corp. (NASDAQ: APIC), with a first day loss of 1.8% and total negative return of 42.8%. There were 30 health care IPOs in the second quarter, up from 16 in the first quarter, and gross receipts totaled $2.7 billion, more than double the first quarter total.

The third-highest number of IPOs came in the tech sector, wherein 10 deals raised $1.2 billion. In the first quarter there were four technology IPOs that raised $1.3 billion.

ALSO READ: Insider Buying Jumps During Holiday Shortened Week

The top 10 IPOs for the quarter, according to IPO ETF manager Renaissance Capital, were:

  1. Tallgrass Energy G.P. L.P. at $1.2 billion gross proceeds and 10.9% return
  2. Univar Inc. (NYSE: UNVR) at $770 million and 18.3% return
  3. Fitbit Inc. (NYSE: FIT) at $732 million and 91.2% return
  4. TransUnion (NYSE: TRU) at $665 million and 11.6% return
  5. EQT G.P. Holdings L.P. (NYSE: EQGP) at $621 million and 25.9% return
  6. Black Knight Financial Services Inc. (NYSE: BKFS) at $441 million and 26% return
  7. Black Stone Minerals L.P. (NYSE: BSM) at $428 million and negative 9.4% return
  8. 8point3 Energy Partners L.P. (NASDAQ: CAFD) at $420 million and negative 11.3% return
  9. Party City Holdco Inc. (NYSE: PRTY) at $372 million and 19.2% return
  10. Fortress Transportation and Infrastructure LLC (NYSE: FTAI) at $340 million and 6.6% return

In the first half of 2015, gross proceeds total $18.3 billion compared with $31.5 billion in the first half of last year.

Through the week ending July 2, Renaissance Capital reported that 105 IPOs have priced in the United States so far this year, down about 29% from a year ago. Total proceeds raised through June equaled $18.3 billion, down about 42% compared with the same period in 2014. Of the 105 IPOs that have gone off this year, 47 have come from the health care sector. Last year’s IPO total came in at $85.2 billion, the highest total in the past 10 years. Renaissance Capital does not include “best efforts” or blank check companies in its totals.

ALSO READ: 5 Oil and Gas Stocks Analysts Want You to Buy Now

Sponsored: Attention Savvy Investors: Speak to 3 Financial Experts – FREE

Ever wanted an extra set of eyes on an investment you’re considering? Now you can speak with up to 3 financial experts in your area for FREE. By simply
clicking here
you can begin to match with financial professionals who can help guide you through the financial decisions you’re making. And the best part? The first conversation with them is free.


Click here
to match with up to 3 financial pros who would be excited to help you make financial decisions.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.