The IPO scene has been relatively weak over the past two weeks.<\/p>\n
Many deals that have scheduled to come to market have been either postponed or subjected to ‘Day-to-Day’ status while, in theory, management mulls over valuation.<\/p>\n
However, the weakness will likely be subsided as a pair of deals debut today: Inovalon Holdings (Nasdaq: INOV)<\/a><\/strong> & Invitae Corporation (NYSE: NVTA)<\/strong><\/a>.<\/p>\n Inovalon Holdings<\/strong> is a leading technology company that combines advanced cloud-based data analytics and data-driven intervention platforms to achieve meaningful insight and improvement in clinical and quality outcomes, utilization, and financial performance across the healthcare landscape.\u00a0 As we were quoted in Investors Business Daily<\/a><\/strong>, this deal was multiple-times over-subscribed. The follow-thru after the raise in range came thru as the deal priced<\/strong><\/a> $1.00 above the already upwardly-revised range.<\/p>\n Thomson-Reuters throws some cold water on the hot deal saying that growth within the company could be a reason for concern.<\/p>\n Inovalon\u2019s 20% growth is not as impressive as that of companies, such as Castlight Health and Veeva Systems, in recent memorable health technology IPOs, reflecting its more measured performance over a longer period.<\/p>\n Inovalon also saw revenue fall slightly in 2013, though it put this down to the loss of a major customer. Customer concentration is an issue since Inovalon\u2019s top 10 clients accounted for 70% of revenue in the first nine months of 2014.<\/p>\n The company also faces some high-powered competition in the form of Oracle, Dell, SAP and IBM, as well as Accenture and Deloitte Consulting.<\/p>\n The float attracted both healthcare and tech specialist investors though as Castlight\u2019s disappointing post-IPO performance has shown (it has almost halved from its IPO price) there is a danger that expectations are too high when the less price-sensitive tech crowd sets the valuation.<\/p><\/blockquote>\n The other deal debuting today, Invitae Corporation<\/strong>, slightly up-sized its deal and priced<\/strong><\/a> above range. This company’s goal is to bring comprehensive genetic information into mainstream medical practice to improve the quality of healthcare for billions of people.<\/p>\n That’s the word from our friend Bob Pisani <\/a><\/strong>of CNBC. In his latest article<\/a><\/strong>, he reminds us that things have been slow on the new issue scene so far in 2015.\u00a0 Bob points out that energy and oil MLP IPOs have been virtually non-existent with the recent drop in oil. In addition, there’s a lack of ‘large deals’.<\/p>\n Currently, there are zero new IPOs on the schedule for the week of February 16, but we believe that will change.<\/p>\n “I expect underwriters to likely announce terms for a few deals next week and then I believe things will pick up in March,” senior managing partner of IPOBoutique, Scott Sweet said. “GoDaddy could come in March; Party City may debut sometime soon; I think things will certainly pick up.”<\/p>\n In reference to the IPO market last year, the scene really picked up from March-July. Last year, a total of 25 IPOs debuted in March as compared to 17 and 19 deals in the month of January and February of 2014, respectively.<\/p>\n","protected":false},"excerpt":{"rendered":" The IPO scene has been relatively weak over the past two weeks. Many deals that have scheduled to come to market have been either postponed or subjected to ‘Day-to-Day’ status while, in theory, management mulls over valuation. However, the weakness will likely be subsided as a pair of deals debut today: Inovalon Holdings (Nasdaq: INOV)[…]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"zakra_general_container_width":0,"zakra_general_content_width":0,"zakra_general_sidebar_width":0,"zakra_sticky_header":"customizer","zakra_header_main_area":true,"zakra_site_logo_width":0,"zakra_header_top_enabled":"customizer","zakra_header_top_style":"customizer","zakra_primary_menu_item_style":"customizer","zakra_page_header_text_color":"","zakra_page_header_layout":"customizer","zakra_page_title_bg":"","zakra_footer_widgets_bg_image":0,"zakra_page_title_bg_repeat":"customizer","zakra_page_title_bg_position":"customizer","zakra_page_title_bg_size":"customizer","zakra_page_title_bg_attachment":"customizer","zakra_breadcrumbs_enabled":"customizer","zakra_breadcrumbs_text_color":"","zakra_breadcrumbs_separator_color":"","zakra_breadcrumbs_link_color":"","zakra_breadcrumbs_link_hover_color":"","zakra_page_title_bg_image":0,"zakra_footer_widgets_enabled":"customizer","zakra_footer_column_layout_1_style":"customizer","zakra_footer_widgets_bg":"","zakra_footer_widgets_bg_repeat":"customizer","zakra_footer_widgets_bg_position":"customizer","zakra_footer_widgets_bg_size":"customizer","zakra_footer_widgets_bg_attachment":"customizer","zakra_footer_bar_enabled":"customizer","zakra_footer_bar_style":"customizer","footnotes":""},"categories":[24],"tags":[109,110],"class_list":["post-293","post","type-post","status-publish","format-standard","hentry","category-ipo","tag-inov","tag-nvta"],"_links":{"self":[{"href":"https:\/\/www.ipoboutique.com\/blog\/wp-json\/wp\/v2\/posts\/293","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ipoboutique.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ipoboutique.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ipoboutique.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ipoboutique.com\/blog\/wp-json\/wp\/v2\/comments?post=293"}],"version-history":[{"count":3,"href":"https:\/\/www.ipoboutique.com\/blog\/wp-json\/wp\/v2\/posts\/293\/revisions"}],"predecessor-version":[{"id":296,"href":"https:\/\/www.ipoboutique.com\/blog\/wp-json\/wp\/v2\/posts\/293\/revisions\/296"}],"wp:attachment":[{"href":"https:\/\/www.ipoboutique.com\/blog\/wp-json\/wp\/v2\/media?parent=293"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ipoboutique.com\/blog\/wp-json\/wp\/v2\/categories?post=293"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ipoboutique.com\/blog\/wp-json\/wp\/v2\/tags?post=293"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}IPO Scene just Heating Up?<\/h2>\n