Weekly Secondary Review: 10/9/17 – 10/13/17

This past week 10 secondary offerings came to market and IPO Boutique placed BUY ratings on 7 of them. In all, $2.01bn was raised by companies in the secondary market this week.

The average gain of IPO Boutique BUY rated offerings this week at first trade was 1.8%

The average gain of IPO Boutique Neutral rated offerings this week at first trade was -1.0%.

The last 20 IPO Boutique ‘BUY’ rated secondary offerings have produced an average gain of 5.11% at first trade and an average gain of 9.88% at the high of their first-day of trading.

It was another lighter week for follow-on offerings but those that did bring their deals to market saw a bit of success. Seven of the eight IPO Boutique BUY rated deals opened above the offering price with the best being Protagonist Therapeutics (PTGX), AnaptysBio (ANAB) and Flexion Therapeutics (FLXN) which opened, 3.8%, 3.4% and 3.0% above their offering prices, respectively. While these deals opened higher, the trend has recently been that many of these biotech follow-offerings have sold off later in the day.

The largest offering of the week was Micron Technology’s (MU) $1.2bn offering underwritten by J.P. Morgan. ‘MU’ opened 0.5% higher and didn’t break its offering price until late in the afternoon — ultimately closing 1.0% below the offering price. IPO Boutique rated this large cash raise a BUY.

There are currently two secondary offerings being marketed for the upcoming week, Bluelinx Holding (BXC) and RumbleOn, Inc. (RMBL).