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US IPO Recap: Nine deals price, Intrexon and Cvent soar
8/12/2013 9:04:00 AM
By: Renaissance Capital
Despite a downturn in the markets last week, the IPO market
surged ahead, with
nine deals pricing
and two gaining more than 50%. Six of last week's deals priced
above their midpoints and seven traded up from their IPO prices,
averaging a 22% gain at market close on Friday. Intrexon (
), which is developing synthetic biology technologies to improve
drugs and food, was the week's winner, gaining over 82% from its
IPO price, while Cvent (
), an event management SaaS provider, delivered the best
first-day return, trading up over 57% in its market debut Friday.
Filing activity slowed down last week, with just two companies
setting terms, including Dan Loeb's Third Point Reinsurance (
), and three companies submitting initial filings.
Dan Loeb's Third Point Reinsurance follows a hedge fund trend
Third Point Reinsurance, the reinsurance arm of Dan Loeb's hedge fund Third Point, set terms for a $300 million IPO that is scheduled to price in the coming week. Loeb is not the first hedge fund manager to foray into the reinsurance space as a way to provide his fund with additional investment capital; David Einhorn created Greenlight Capital Re ( GLRE ) in 2004 and took the company public in 2007, and both SAC Capital and Paulson & Co have set up their own reinsurance arms in the past year. Intercloud Systems (ICLD), a global provider of IT infrastructure management services, also set terms. The company is currently traded on the OTC markets and is looking to raise $20 million as it shifts to the NASDAQ.
Two biotechs and a wind energy company join the IPO pipeline
The summer's wave of biotech IPOs may continue into the fall, as two more biotechs were added to the IPO pipeline last week. Acceleron (XLRN), a clinical-stage biotech developing protein therapeutics for cancer and rare diseases, is looking to raise $75 million and join the ranks of recent successful cancer biotech IPOs from Onconova Therapeutics (ONTX; up 96% from its IPO) and Epizyme (EPZM; 134%). Ruthigen, an early stage biotech developing non-antibiotic therapeutics to prevent and treat infection in surgical procedures, also submitted an initial filing this week and is looking to raise $27 million.
Pattern Energy Group (PATT.RC), which owns and operates eight wind power projects in the US, Canada and Chile, was the largest initial filer last week. The company is looking to raise $345 million and plans to dual list in the US and Canada.
IPO market snapshot
The 125 IPOs in 2013 have raised $27.1 billion and produced an average return of 31%. There have been 66 IPOs in the past 90 days, with total proceeds of $12.2 billion and an average return of 34%. The active IPO pipeline includes 95 companies looking to raise $33.0 billion.