It was another extremely positive week for the IPO market as the four deals that came to market opened 41.7% higher on average. These outsized gains, especially for the companies that fall in a business category that would not be as ‘hot’, indicate to us that the IPO market is teetering on “frothy”. It is not to say that the deals will not continue to open without large premiums in the short-term…but some of these companies valuations can be considered ‘stretched’ at first trade in our opinion.
The deal of the week was CarGurus, Inc. (CARG) which opened with a $13.00 premium over a $16.00 pricing for a 81% gain at first trade. The deal, which was reportedly more than 30-times oversubscribed (according to our sources), traded as high as $31.19 on its opening day.
Optinose, Inc. (OPTN) upsized its offering and priced at the midpoint of the range. Investors liked this outcome as ‘OPTN’ opened at $20.00 or 25% above the $16.00 offering price.
Orthopediatrics Corp (KIDS) priced its full-size deal at the midpoint of the $12.00-$14.00 range and saw a first trade of $18.00 for a gain of 38.5% at first trade. ‘KIDS’ hit a high of $20.90 in its opening week for a gain of 60.8% at top-tick.
Restoration Robotics (HAIR) priced at the low-end of the $7.00-$9.00 range and, like the rest of the IPOs this week, experienced strong after-market demand. HAIR opened at $8.55 for a gain of 22.1% at first trade and hit a first week high of $11.95 for a gain of 70.7% at its high.
Looking ahead to this week, there are five deals on the schedule
LiveXLive Media, Inc. (LXL) is one of the world’s only premium internet networks devoted to live music and music-related video content. IPO Preview Here
Qudian Inc (QD) is 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. IPO Preview Here
MongoDB (MDB) is the leading modern, general purpose database platform. Our platform unleashes the power of software and data for developers and the applications they build. IPO Preview Here
Sea Limited (SE) has developed an integrated platform consisting of digital entertainment (focused on online games), e-commerce, and digital financial services (focused on e-wallet services), each localized to meet the unique characteristics of GSEA. IPO Preview Here
Rise Education Cayman Ltd (REDU) operates in China’s junior English Language Training, or ELT, market, which refers to after-school English teaching and tutoring services provided by training institutions to students aged three to 18. IPO Preview Here
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