Both initial public offerings (IPOs) on last week’s calendar successfully reached the public market and combined to raise a total of about $180 million in new capital. But the IPO market has apparently hit the pause button for the final week of the first quarter, and no offerings are on tap until the first week of April.
Data analytics software maker Alteryx Inc. (NYSE: AYX) raised $126 million at a market cap of $847 million after pricing at $14 per share. The stock got a first-day pop of 11% following its Friday IPO.
Medical technology company Valeritas Holdings Inc. (NASDAQ: VLRX) did not fare as well. The insulin pump maker priced 5.3 million shares at $10, the midpoint of the expected range. The number of shares offered was 12% below the original plan to offer 6 million shares. The stock’s first-day return was a negative 29% and shares were off the IPO price by 33% at the end of the week.
Through the week ending March 24, IPO ETF manager Renaissance Capital reported that 25 IPOs have priced in the U.S. so far this year, up about 213% year over year. Total proceeds raised through last week equaled $9.9 billion. For 2016, Renaissance Capital reported a total of 105 IPOs, down 38% year over year from 170 in 2015. Total 2016 proceeds amounted to $18.8 billion compared with a 2015 total of $30 billion. Renaissance Capital does not include “best efforts” or blank-check companies in its totals, nor does it include IPOs that raise less than $10 million.
A blank-check company, Silver Run Acquisition II (NASDAQ: SRUNU), sold 90 million units at $10 a unit last week, more than double its expected offering of 40 million units. The company intends to acquire an energy business. The total raised matches the record set in 2007 for the largest-ever IPO of a SPAC.
A Brazilian airline and a U.S. trucking company filed for IPOs last week and are expected to hit the public markets in the first week of April.