US IPO Recap: Textura and LightInTheBox gain over 30%, eight companies file

a generic image of a person pointing at a graph Credit: Shutterstock photo

Three companies priced US IPOs last week, while the fourth (and largest) expected deal, Colony American Homes (CAHS), was postponed. Two of the priced deals, Textura ( TXTR ) and LightInTheBox ( LITB ), gained more than 30%, but the third, RCS Capital ( RCAP ), ended the week 3% below its offer price. Two biotechs launched deals, and eight companies, half of which plan to raise more than $300 million, made initial IPO filings .

LightInTheBox is first Chinese company to list in the US since YY

LightInTheBox, which sells China-made products to consumers in Europe and the US, was the first IPO from a Chinese company in 2013, despite the tremendous success of the two US IPOs from China in 2012, Vipshop ( VIPS ) and YY ( YY ). Vipshop, another e-commerce company, is the best performing IPO since November 2011, having quadrupled in price; YY, a social platform, is up 174%. Textura had the latest strong debut from a software company, rising 39% on its first day of trading on Friday. It has sold to 41 of the top 100 contractors in North America, and its sales are growing at 50%+. Colony American Homes was the first company since mid-April to postpone an IPO.

With biotechs attracting big returns, two more launch deals

Following Epizyme's 53% first-day gain in the prior week (it is now up 73%), bluebird bio (BLUE) and PTC Therapeutics (PTCT), both development-stage biotechs, set terms. PTC Therapeutics first filed for an IPO in 2006 but withdrew in 2007. It has a drug candidate for muscular dystrophy and cystic fibrosis in Phase 3 trials. Backed by Third Rock Ventures, bluebird bio is developing therapies for genetic and orphan diseases.

Three foreign deals among eight added to the pipeline

For the second consecutive week, two foreign companies with more than $1 billion in sales filed for US IPOs. Graña y Montero is Peru's largest engineering and construction company, and Volaris Aviation is a low-cost airline based in Mexico. The day before Colony American Homes postponed its deal, another REIT that leases single-family properties, American Homes 4 Rent, filed for a $1.3 billion IPO. Backed by Apollo, Athlon Energy (ATHL) is the second E&P to file this year, after Jones Energy (JONE) filed in the prior week.

IPO market snapshot

The 77 IPOs in 2013 have raised $17.2 billion and produced an average return of 19%. There have been 55 IPOs in the past 90 days, with total proceeds of $11.3 billion and an average return of 19%. The active IPO pipeline includes 111 companies looking to raise $32.6 billion.

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

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

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.