Model N, Tetraphase IPOs Debut


Two IPOs hit the market today - with two very different first-day performances.

Model N ( MODN ) , a provider of revenue management software to the life science and technology sectors, was up 28% in its debut despite pricing above its expected range. The stock went public at $15.50 a share, ahead of its predicted $12.50-$14.50 range. But that didn't stop it from rising all the way to $19.84 on Wednesday.

Tetraphase Pharmaceutical's ( TTPH ) IPO wasn't quite as effective.

A developer of antibiotics that treat serious abdominal and urinary tract infections, Tetraphase shares priced at $7 a share - well below the $10 to $12 range listed in the company's original IPO filing. The stock didn't budge from there, finishing at exactly $7 after rising as high as $7.50.

Six more companies are scheduled to go public in the coming days, including another pharmaceutical company called Enanta. Tetraphase's first-day struggles likely have Enanta officials a bit more apprehensive about their company's IPO.

On the flip side, Marin Software is surely encouraged by Model N's smashing debut. That should embolden the San Francisco-based cloud-computing company ahead of its IPO, which could come by week's end.

Model N and Tetraphase were just the fourth and fifth companies to go public this month.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Stocks

Referenced Stocks: MODN , TTPH

Wyatt Investment Research

Wyatt Investment Research

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