Weekly Secondary Review: 9/18/17 – 9/22/17

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This past week 12 secondary offerings came to market and IPO Boutique placed BUY ratings on 8 of them. In all, $2.3bn was raised by companies in the secondary market this week — a far cry from the $7.2bn raised last week.

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The average gain of IPO Boutique BUY rated offerings this week at first trade was 3.9%

The average gain of IPO Boutique Neutral rated offerings this week at first trade was 1.1%.

The last 20 IPO Boutique ‘BUY’ rated secondary offerings have produced an average gain of 2.73% at first trade and an average gain of 6.93% at the high of their first-day of trading.

It was a little less of a frenetic week with just the twelve offerings but the deals that came produced solid results. The best deals this week were once again in the healthcare sector as Iovance Biotherapeutics (Nasdaq: IOVA), Juno Therapeutics (Nasdaq: JUNO) & Aldeyra Therapeutics (Nasdaq: ALDX) opened 9.2%, 5.2% and 4.8% above the offering price respectively. IPO Boutique placed BUY ratings on all three of these deals.

The largest offering this week was a company which entertains the follow-on offering market repeatedly, Liberty Media Services (Formula One Group) (Nasdaq: FWONK) This was their third offering since the middle of May as shareholders unloaded 40.0mm, 12.5mm and this week 17.7mm shares. The offering was received nicely and opened 0.9% higher and closed its offering session 2.3% above the offering price.

There is currently one secondary offerings being marketed for the upcoming week, Grupo Financiero Galicia S.A. (GGAL).

Weekly Secondary Performance Report (9.22.17)

IPO Weekly Recap: Zai Lab, Best Inc shine on Wednesday to remember

It was a very strong week for the IPO market as four of the seven IPOs opened with greater than a 10% premium at first trade.IPOSumnmary092217

 


ZaiLabLimited

The best deal this week was the Zai Lab Limited (Nasdaq: ZLAB) offering. The offering upsized from 5.88mm shares to 8.0mm shares and priced at the high-end of the range, $18.00. ZLAB opened with a first trade of $24.25 and traded even better in its first three days as a public company. Zai Lab Limited hit a first week high of $32.64 or 81.3% above its offering price marking it as the best first-week performing IPO in 2017 among cash raises greater than $25 million. Zai Lab Limited closed the week at $27.73 or 54% above the offering price.

BestIncLogo

The week’s largest deal, Best Inc. (NYSE: BSTI), reworked the terms of its deal early in the week to appease investors and it paid off. ‘BSTI’ downsized from a 62.1mm shares offering to 45mm shares and decreased the range from $13-to-$15 to $10-$11. ‘BSTI’ priced at $10.00 and opened at $11.48 for a gain of 14.8% at first trade. In its third trading session Best Inc rallied and traded as high a $12.90 before a closing print of $12.05 for a gain of 20.5% as of Friday.

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Latin American travel company, Despegar(.)Com Corp (NYSE: DESP), priced at the high-end of the range, $26.00, and opened with a $3.00 premium for an 11.5% gain at first trade. Despegar(.)com Corp hit a first week high of $33.34 or 28.2% above the offering price at top tick. 

CelcuityLLClogo

The two smaller healthcare offerings brought to market also performed very well. Celcuity LLC (Nasdaq: CELC) upsized its offering from 2.0mm to 2.4mm and priced at $9.50 — the upper half of the range. CELC’s opening print was $12.35 for an instant 30% return on the deal underwritten by Craig Hallum. Celcuity traded as high as $15.55 on its second trading session before closing the week at $13.63 or 43.4% above the offering price.

krystalbiotech

Ladenburg Thalmann was the sole underwriter on the Krystal Biotech (Nasdaq: KRYS) offering which produced a $0.50 premium on a mid-range $10.00 pricing. The aftermarket appetite was not as strong on the KRYS offering as the deal touched its offering price on Friday and closed the session at $10.06.

OasisPetroleium

It should be noted that two deals underperformed. Oasis Midstream Petroleum (NYSE: OMP) priced $2.00 below its range, $17.00, and opened at $16.75. It should be noted that OMP states on their S-1/A that they would pay an annual dividend of $1.50 which would be 8.9% given the $16.75 close on Friday.

SecooHoldingLogo

Secoo Holdings Limited (Nasdaq: SECO) priced at the upper half of the range, $13.00, and opened with a $12.10 first print. SECO’s lowest print came at the end of the Friday session where the deal hit $9.97 before closing at an even $10.00 or 23.1% below the offering price.


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Roku Inc (ROKU) IPO Preview

RokuLogo

Company: Roku, Inc.
Symbol: ROKU
Description: They pioneered streaming to the TV. Roku connects users to the streaming content they love, enables content publishers to build and monetize large audiences, and provides advertisers with unique capabilities to engage consumers.
Shares: 15.7 million
Price Range: $12.00-$14.00
Trade Date: 9/28
Underwriter(s): Morgan Stanley, Citigroup, Allen & Co., RBC Capital Markets
Co-Manager(s): Needham & Co., Oppenheimer & Co., William Blair

Link to S-1/A Prospectus

Link to Retail Roadshow

Business: As of June 30, 2017, they had 15.1 million active accounts. By comparison, the fourth largest multichannel video programming video distributor in the United States had approximately 13.3 million subscribers as of June 30, 2017. Their users streamed more than 6.7 billion hours on the Roku platform in the six months ended June 30, 2017, 62% growth from the six months ended June 30, 2016. TV streaming’s disruptive content distribution model is shifting billions of dollars of economic value. Roku is capitalizing on this large economic opportunity as a leading TV streaming platform for users, content publishers and advertisers.

Market Opportunity: The rapid adoption of TV streaming has disrupted the traditional linear TV distribution model, creating new options for consumers and new economic opportunities for content publishers and advertisers. OTT viewing has become mainstream in the United States. According to an April 2017 comScore report, 51 million U.S. homes have used OTT, and OTT has a 54% reach among homes with WiFi. Additionally, their advertising products enable advertisers to serve relevant ads to our users and measure return on investment.

Financials:  In the six months ended June 30, 2017, they generated revenue of $199.7 million, up 23% from $162.3 million in the six months ended July 2, 2016. In fiscal 2016, they generated revenue of $398.6 million, up 25% from $319.9 million in fiscal 2015.

RokuFinancials

 

Book-Building Status: The way the book comes together during the week of the roadshow is the most critical indicator to first-day and first-week performance. IPO Boutique uses its 45 years of experience and sources all over the street to gather daily subscription levels, specific price guidance and what type of investors are currently in the book or are anchoring orders in the book. In addition, recent underwriter performance on sector specific deals is a strong factor that IPO Boutique takes into account when determining if our clients should indicate for any offering.

IPO Boutique subscription clients receive daily updates on this critical information.

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IPO Pipeline: Seven New Filings added to pipeline (Week ending 9-22-17)


IPO Boutique keeps apprised of the active pipeline. Currently there are 72 active IPOs in the pipeline as of September 22, 2017. No SPACs or Unit Offerings are included. While the numbers may look diminished, we outlined why “looks may be perceiving” when it comes to the IPO pipeline in this article.

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Additionally, the ordinary retail investor had access to indicate for the Deciphera Pharmaceuticals offering through selling group Motif but that window has now closed. You can indicate for these deals in the future by clicking on the link below:

Deciphera Offering
Company: CarGurus, Inc.


Symbol: CARG
Description: CarGurus is a global, online automotive marketplace connecting buyers and sellers of new and used cars.
Trade Date: TBD
Underwriter(s): Goldman Sachs & Co., Allen & Company, RBC Capital Markets
Co-Manager(s): JMP Securities, Raymond James, William Blair
Filed 9-15-17
Listed Cash Raise: $100 million

Company: Qudian Inc.
Symbol: QD
Description: They are a provider of online credit products, we use big data-enabled technologies, such as artificial intelligence and machine learning, to transform the consumer finance experience in China.
Trade Date: TBD
Underwriter(s): Morgan Stanley, Credit Suisse, Citigroup, CICC, UBS Investment Bank
Co-Manager(s): Stifel, Needham & Co.
Filed 9-18-17
Listed Cash Raise: $750 million

Company: Optinose Inc.
Symbol: TBD
Description: They are a specialty pharmaceutical company focused on the development and commercialization of products for patients treated by ear, nose and throat, or ENT, and allergy specialists.
Trade Date: TBD
Underwriter(s): Jefferies, Piper Jaffray, BMO Capital Markets, RBC Capital Markets
Filed 9-18-17
Listed Cash Raise: $100 million

Company: NetREIT, Inc.
Symbol: SQFT
Description: They are a self-managed Maryland corporation originally formed in California in 1999 and reincorporated in Maryland in 2010. Their current portfolio consists of 1,695,000 square feet comprised of 15 office properties, two industrial properties and five retail properties, which they refer to collectively as their commercial portfolio.
Trade Date: TBD
Underwriter(s): Janney Montgomery Scott
Filed 9-18-17
Listed Cash Raise: $69 million

Company: Cue Biopharma, Inc.
Symbol: CUE
Description: They are an innovative biopharmaceutical company developing a novel and proprietary class of biologic drugs for the selective modulation of the human immune system to treat a broad range of cancers and autoimmune disorders.
Trade Date: TBD
Underwriter(s): MDB Capital, Feltl and Company
Filed 9-21-17
Listed Cash Raise: $40 million

Company: VM Holding S.A.
Symbol: NEXA
Description: They are age-scale, low-cost integrated zinc producer with over 60 years of experience developing and operating mining assets in Latin America.
Trade Date: TBD
Underwriter(s): JP Morgan, BMO Capital Markets, Morgan Stanley, Credit Suisse, BofA Merrill Lynch, Citigroup, Scotiabank, Bradesco BBI, Credicorp Capital
Filed 9-21-17
Listed Cash Raise: $100 million

Company: MongoDB, Inc.
Symbol: MDB
Description: MongoDB is the leading modern, general purpose database platform. Our platform unleashes the power of software and data for developers and the applications they build.
Trade Date: TBD
Underwriter(s): Morgan Stanley, Goldman Sachs & Co., Barclays, Allen & Company LLC
Co-Manager(s): Stifel, Canaccord Genuity, JMP Securities
Filed 9-21-17
Listed Cash Raise: $100 million

TERMS ADDED

Company: Deciphera Pharmaceuticals
Symbol: DCPH
Description: They are a clinical-stage biopharmaceutical company developing new drugs to improve the lives of cancer patients by addressing key mechanisms of drug resistance that limit the rate and durability of response of many cancer therapies.
Shares: 6.25 million
Price Range: $15.00-$17.00
Trade Date: 9/28
Underwriter(s): J.P. Morgan, Piper Jaffray
Co-Manager(s): JMP Securities, Nomura
Terms Added: 9-18-17

Deciphera Offering

Company: Roku, Inc.
Symbol: ROKU
Description: They pioneered streaming to the TV. Roku connects users to the streaming content they love, enables content publishers to build and monetize large audiences, and provides advertisers with unique capabilities to engage consumers.
Shares: 15.7 million
Price Range: $12.00-$14.00
Trade Date: 9/28
Underwriter(s): Morgan Stanley, Citigroup, Allen & Co., RBC Capital Markets
Co-Manager(s): Needham & Co., Oppenheimer & Co., William Blair
Terms Added: 9-18-17

Company: Nucana PLC
Symbol: NCNA
Description: They are a clinical-stage biopharmaceutical company focused on significantly improving treatment outcomes for cancer patients by applying our ProTide technology to transform some of the most widely prescribed chemotherapy agents, nucleoside analogs, into more effective and safer medicines.
Shares: 6.67 million
Price Range: $14.00-$16.00
Trade Date: 9/28
Underwriter(s): Citigroup, Jefferies, Cowen
Co-Manager(s): William Blair
Terms Added: 9-18-17

Company: PQ Group Holdings Inc.
Symbol: PQG
Description: They are a leading global provider of catalysts, specialty materials and chemicals, and services that enable environmental improvements, enhance consumer products, and increase personal safety.
Shares: 29 million
Price Range: $21.00-$23.00
Trade Date: 9/29
Underwriter(s): Morgan Stanley, Goldman Sachs & Co., Citigroup, Credit Suisse
Co-Manager(s): J.P. Morgan, Jefferies, Deutsche Bank Securities, KeyBanc Capital Markets, Nomura
Terms Added: 9-19-17

Company: AGM Group Holdings Inc.
Symbol: AGMH
Description: Incorporated on April 27, 2015, under the laws of the British Virgin Islands, they strive to become a one-stop shop that focuses on providing financial technology service to brokers, and institutional clients.
Shares: 1.0 – 1.4 million
Range: $5.00-$5.00
Trade Date: TBD
Underwriter(s): Network 1 Financial Securities
Terms Added: 9-19-17
Listed Cash Raise: Best Efforts Offering

Company: Dogness (International) Corporation
Symbol: DOGZ
Description: They design and manufacture fashionable and high-quality leashes, collars, harnesses to complement cats’ and dogs’ appearances and keep them safe.
Shares: 8.0-10.0 million
Price Range: $4.00-$6.00
Trade Date: TBD
Underwriter(s): Spartan Securities
Filed & Terms Added 9-20-17


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PQ Group Holdings (PQG) IPO Preview

PQ Group Logo

Company: PQ Group Holdings Inc.
Symbol: PQG
Description: They are a leading global provider of catalysts, specialty materials and chemicals, and services that enable environmental improvements, enhance consumer products, and increase personal safety.
Shares: 29 million
Price Range: $21.00-$23.00
Trade Date: 9/29
Underwriter(s): Morgan Stanley, Goldman Sachs & Co., Citigroup, Credit Suisse
Co-Manager(s): J.P. Morgan, Jefferies, Deutsche Bank Securities, KeyBanc Capital Markets, Nomura

Link to S-1/A Prospectus

Link to Retail Roadshow

Business: Their products and solutions help companies produce vehicles with improved fuel efficiency and cleaner emissions. Their materials are critical ingredients in consumer products that make teeth brighter, skin softer, and wounds heal faster. They produce highly engineered materials that make highways and airports safer for drivers and pilots. Because their products are predominantly inorganic and carbon-free, they believe they contribute to improving the sustainability of our planet.

Financials: Their predecessor and successor sales were $410.4 million, $390.8 million, $397.4 million, $388.9 million, and $1,064.2 million, and their net income (loss) was $48.5 million, $39.3 million, $8.5 million, $11.4 million, and ($79.2 million) in 2012, 2013, 2014, 2015, and 2016, respectively. In the first half of 2017, their sales increased 94.4% to $722.2 million, while their net loss decreased 95.0% to ($4.0 million).

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EPS for the six months ending June 30, 2017 was (0.04) compared to (1.64) for the six months ending June 30, 2016.

Large Offering: At the midpoint of the range, PQG would raise $638 million which would be the largest cash raise since Altice USA (ATUS) in June. It would also be the sixth largest IPO in 2017 (not including SPACs).

 

Book-Building Status: The way the book comes together during the week of the roadshow is the most critical indicator to first-day and first-week performance. IPO Boutique uses its 45 years of experience and sources all over the street to gather daily subscription levels, specific price guidance and what type of investors are currently in the book or are anchoring orders in the book. In addition, recent underwriter performance on sector specific deals is a strong factor that IPO Boutique takes into account when determining if our clients should indicate for any offering.

IPO Boutique subscription clients receive daily updates on this critical information.

Conclusion: IPO Boutique provides ratings, daily commentary and a forecast for how this IPO will open vs. its offering price. We have kept a track record with our performance for last 12 years at our website.

Indicate with confidence, SUBSCRIBE today.

Nucana plc (NCNA) IPO Preview

NucanaLogo

Company: Nucana PLC
Symbol: NCNA
Description: They are a clinical-stage biopharmaceutical company focused on significantly improving treatment outcomes for cancer patients by applying our ProTide technology to transform some of the most widely prescribed chemotherapy agents, nucleoside analogs, into more effective and safer medicines.
Shares: 6.67 million ADSs
Price Range: $14.00-$16.00
Trade Date: 9/28
Underwriter(s): Citigroup, Jefferies, Cowen
Co-Manager(s): William Blair

Link to S-1/A Prospectus

Link to Retail Roadshow

Business: Their most advanced ProTide candidates, Acelarin® and NUC-3373, are new chemical entities derived from the nucleoside analogs gemcitabine and 5-fluorouracil, respectively, two widely used chemotherapy agents. Acelarin is currently being evaluated in four clinical trials across several solid tumor indications, including ovarian cancer, biliary cancer and pancreatic cancer. NUC-3373 is currently in a Phase 1 trial for the potential treatment of a wide range of advanced solid tumor cancers. They have retained worldwide rights to these lead product candidates as well as our preclinical product candidates, all of which we refer to as ProTides.

In a Phase 1 dose-ranging trial in 49 evaluable patients with advanced metastatic solid tumors, Acelarin was well tolerated, achieved a 78% disease control rate and was associated with intracellular levels of active anti-cancer metabolite over 200 times higher than those reported for gemcitabine. A subset of 14 evaluable patients with relapsed/refractory gynecological cancers achieved a 93% disease control rate. In a Phase 1b dose-ranging trial in 23 evaluable patients with recurrent ovarian cancer, Acelarin was combined with carboplatin and achieved a 96% disease control rate.

Based on these disease control rates and the tolerability profile, they have begun a Phase 2 trial of Acelarin in patients with platinum-resistant ovarian cancer, for which they expect to report interim data in 2018. Acelarin is also being evaluated in another Phase 1b trial in patients with biliary cancer to determine its optimal dose in combination with cisplatin. They expect to report data from this trial in 2018, after which they plan to commence a multi-national Phase 3 trial. In addition, the National Cancer Research Institute in the United Kingdom is facilitating a Phase 3 trial of Acelarin for the treatment of patients with pancreatic cancer.

NuCanaPipeline

Competition and Sector Performance:  Healthcare Related IPOs as of 9.21.17pm

HealthCareIPOs09212017

Insider Buying: Certain of their existing stockholders have indicated an interest in purchasing up to an aggregate of approximately $40 million of shares of their common stock.

Collaborations & License Agreement: 

They have entered into a research, collaboration and license agreement with Cardiff University and University College Cardiff Consultants Ltd., or Cardiff Consultants, for the design, synthesis, characterization and evaluation of ProTides, with the results of such research assigned to us and other intellectual property of Cardiff University and Cardiff Consultants exclusively licensed to them for use for all purposes related to selected ProTides and the nucleoside family of the selected ProTides.

Book-Building Status: The way the book comes together during the week of the roadshow is the most critical indicator to first-day and first-week performance. IPO Boutique uses its 45 years of experience and sources all over the street to gather daily subscription levels, specific price guidance and what type of investors are currently in the book or are anchoring orders in the book. In addition, recent underwriter performance on sector specific deals is a strong factor that IPO Boutique takes into account when determining if our clients should indicate for any offering.

IPO Boutique subscription clients receive daily updates on this critical information.

Conclusion: IPO Boutique provides ratings, daily commentary and a forecast for how this IPO will open vs. its offering price. We have kept a track record with our performance for last 12 years at our website.

Indicate with confidence, SUBSCRIBE today.

Secondaries Announced 9.21.17

IPO BOUTIQUE CLIENTS and IPO BOUTIQUE SECONDARY ALERTS CLIENTS received ALL this information to their inbox on a REAL TIME basis.

If having real-time alerts for secondary offerings would be an advantage to you, inquire about a subscription today!

Our Buy, Neutral or Avoid ratings of the Secondaries below are intended as a recommendation for those who buy Secondaries on a regular basis. For example, this is not to be interpreted as a Buy recommendation in the traditional sense of adding to your stock portfolio; this is a short term (usually one day or opening trade) time period.

Company: Spark Therapeutics Inc – Block
Symbol: ONCE
Price: Last Trade $87.10
Trade Date: 9/22
Shares: 1 million
Re-Offer Range: Subscription Needed
Underwriter(s) : Morgan Stanley
Description: They are a leader in the field of gene therapy, seeking to transform the lives of patients suffering from debilitating genetic diseases by developing one-time, life-altering treatments.
Rating = Subscription Needed

 

Nightstar Therapeutics Limited (NITE) IPO Preview

Company: Nightstar Therapeutics Limited
Symbol: NITE
Description: They are a leading clinical-stage gene therapy company focused on developing and commercializing novel one-time treatments for patients suffering from rare inherited retinal diseases that would otherwise progress to blindness.
Shares: 5.36 million ADSs
Range: $13.00-$15.00
Trade Date: 9/28
Underwriter(s): Jefferies, Leerink Partners, BMO Capital Markets
Co-Manager(s): Wedbush PacGrow, Chardan

Link to S-1/A Prospectus

Link to Retail Roadshow

Business: Leveraging their expertise in ophthalmology, gene therapy and drug development, they are developing a pipeline of proprietary product candidates that are designed to substantially modify or halt the progression of inherited retinal diseases for which there are no currently approved treatments. Their lead product candidate, NSR-REP1, for the treatment of choroideremia, or CHM, is entering Phase 3 clinical development in the first half of 2018 and represents the most clinically advanced product candidate for this indication worldwide. In data from 32 patients treated with NSR-REP1 across four open-label clinical trials, over 90% of treated patients maintained their visual acuity over a one-year follow-up period. In some cases, they also observed substantial improvements in visual acuity. They are also conducting a Phase 1/2 clinical trial with theirsecond product candidate, NSR-RPGR, for the treatment of X-linked retinitis pigmentosa, or XLRP. Their third product candidate, NSR-BEST1, is in preclinical development for the treatment of Best vitelliform macular dystrophy, or Best disease.

NightstarTherapetuicsDrugs

Competition and Sector Performance:  Healthcare Related IPOs as of 9.21.17pm

HealthCareIPOs09212017

Insider Buying: Certain of their existing stockholders have indicated an interest in purchasing up to an aggregate of approximately $25 million of shares of their common stock.

Collaborations & License Agreement: 

Oxford University Innovation Limited – In November 2013, they entered into a license agreement with Oxford. Under the 2013 Oxford Agreement, they acquired an exclusive worldwide license, with the right to grant sublicenses, to develop, research, make, import, use, sell, lease, license or otherwise commercially exploit products, including NSR-REP1, covered by the patents and know-how relating to vectors for use in gene therapy for CHM licensed under the 2013 Oxford Agreement for any and all uses.

 

Additionally, in November 2015, they entered into five separate license agreements with Oxford, under which they acquired exclusive worldwide licenses, with the right to grant sublicenses, to develop, research, make, import, use, sell, lease, license or otherwise commercially exploit products, including NSR-RPGR, NSR-BEST1 and three other preclinical gene therapy product candidates, covered by the licensed patents and know-how relating to gene therapy for any and all uses.

Oxford BioMedica (UK) Limited — In December 2013, they entered into a license agreement with Oxford BioMedica (UK) Limited, or BioMedica. Under the BioMedica Agreement, they acquired a non-exclusive license in the United States to manufacture, use, supply, sell, offer to sell, store, develop, research and import certain AAV products for the treatment of CHM, with the right to grant sublicenses to development partners.

Book-Building Status: The way the book comes together during the week of the roadshow is the most critical indicator to first-day and first-week performance. IPO Boutique uses its 45 years of experience and sources all over the street to gather daily subscription levels, specific price guidance and what type of investors are currently in the book or are anchoring orders in the book. In addition, recent underwriter performance on sector specific deals is a strong factor that IPO Boutique takes into account when determining if our clients should indicate for any offering.

IPO Boutique subscription clients receive daily updates on this critical information.

Conclusion: IPO Boutique provides ratings, daily commentary and a forecast for how this IPO will open vs. its offering price. We have kept a track record with our performance for last 12 years at our website.

Indicate with confidence, SUBSCRIBE today.

Deciphera Pharmaceuticals (DCPH) IPO Preview

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Company: Deciphera Pharmaceuticals
Symbol: DCPH
Description: They are a clinical-stage biopharmaceutical company developing new drugs to improve the lives of cancer patients by addressing key mechanisms of drug resistance that limit the rate and durability of response of many cancer therapies.
Shares: 6.25 million
Price Range: $15.00-$17.00
Trade Date: 9/28
Underwriter(s): J.P. Morgan, Piper Jaffray
Co-Manager(s): JMP Securities, Nomura

DeciPheraMotifLogo

Link to S-1/A Prospectus

Link to Retail Roadshow

Business: Their targeted, small molecule drug candidates, designed using their proprietary kinase switch control inhibitor platform, inhibit the activation of kinases, an important family of enzymes, that, when mutated or over expressed, are known to be directly involved in the growth and spread of many cancers. They have built a diverse pipeline of wholly owned, orally administered drug candidates that include three clinical-stage and two research-stage programs. They have designed our lead drug candidate DCC-2618 to inhibit the full spectrum of mutant or amplified KIT and PDGFRα kinases that drive cancers such as gastrointestinal stromal tumors, or GIST.

DecipheraPharmaDrugs

 

 

Competition and Sector Performance:  Healthcare Related IPOs as of 9.21.17pm

HealthCareIPOs09212017

Insider Buying: Certain of their existing stockholders have indicated an interest in purchasing up to an aggregate of approximately $30 million of shares of their common stock.

Book-Building Status: The way the book comes together during the week of the roadshow is the most critical indicator to first-day and first-week performance. IPO Boutique uses its 45 years of experience and sources all over the street to gather daily subscription levels, specific price guidance and what type of investors are currently in the book or are anchoring orders in the book. In addition, recent underwriter performance on sector specific deals is a strong factor that IPO Boutique takes into account when determining if our clients should indicate for any offering.

IPO Boutique subscription clients receive daily updates on this critical information.

Conclusion: IPO Boutique provides ratings, daily commentary and a forecast for how this IPO will open vs. its offering price. We have kept a track record with our performance for last 12 years at our website.

Indicate with confidence, SUBSCRIBE today.

RYB Education, Inc #IPO Preview

RYBEducationLogo

Company: RYB Education, Inc.
Symbol: RYB
Description: They are the largest early childhood education service provider in China, as measured by annual total revenues in 2016, according to the Frost & Sullivan Report.
Shares: 7.8 million ADSs
Range: $16.00-$18.00
Trade Date: 9/27
Underwriter(s): Credit Suisse, Morgan Stanley
Co-Manager(s): CICC, BNP PARIBAS

Link to S-1/A Prospectus

Link to Retail Roadshow

Business: They are a pioneer in the early childhood education market in China and opened our first play-and-learn center in China in 1998. In their nearly two decades of operating history, they have built the well-recognized  education brand and developed many education practices in China’s early childhood education industry, and our substantial growth was powered by their industry-leading curriculum development capability and teacher training system. As of June 30, 2017, their nationwide teaching facility network covered 307 cities and towns in 30 provinces and municipalities in China. Their business has grown continually. The total number of kindergartens and play-and-learn centers in operation in their network grew from 627 as of December 31, 2014 to 1,108 as of June 30, 2017.

Financials: Their net revenues increased from US$65.1 million in 2014 to US$82.9 million in 2015 and US$108.5 million in 2016. Their net revenues increased from US$49.1 million for the six months ended June 30, 2016 to US$64.3 million for the same period of 2017. They recorded US$5.9 million net income in 2016 and US$1.3 million net loss in each of 2015 and 2014. Their net income increased from US$4.1 million for the six months ended June 30, 2016 to US$4.9 million for the same period of 2017.

RYBEducation.Financials

Competition and Sector Performance:  

  • Bright Scholar Education – This operator of the largest operator of international and bilingual K-12 schools in China in terms of student enrollment as of September 1, 2016, according to the Frost & Sullivan report, opened $0.50 above the $10.50 offering price. As of 9.21.17, BEDU is trading 117% above the offering price.
  • China Online Education Group June 2016 IPO priced at the midpoint of the $18.00-$20.00 range, $19.00, and opened at $19.50. The offering traded fairly stabile for the first three months as a public company but then fell off at a significant pace. As of 9.21.17, COE is trading at $13.50 or 31% below the offering price.

Book-Building Status: The way the book comes together during the week of the roadshow is the most critical indicator to first-day and first-week performance. IPO Boutique uses its 45 years of experience and sources all over the street to gather daily subscription levels, specific price guidance and what type of investors are currently in the book or are anchoring orders in the book. In addition, recent underwriter performance on sector specific deals is a strong factor that IPO Boutique takes into account when determining if our clients should indicate for any offering.

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Conclusion: IPO Boutique provides ratings, daily commentary and a forecast for how this IPO will open vs. its offering price. We have kept a track record with our performance for last 12 years at our website.

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