Oct 30, 2014, 3:06 pm EDT
On October 20th, I wrote a post for the IPO Playbook on why Alibaba (BABA) looked poised for a nice short-term gain. The two key reasons: There would be a snap back from the market correction and there would be a boost from the expiration of the quiet period.
And yes, things turned out pretty well. Consider that Alibaba stock is up about 12% since then.
The post-correction rally was much more than expected (it’s as if nothing bad ever happened!), but the impact of the quiet period was more predictable. All IPOs require a quiet period, which prohibits a company’s underwriters from publishing analyst reports for 40 days after a public offering. The main reason is to help alleviate some of the inevitable hype. Read
Oct 29, 2014, 3:28 pm EDT
Sientra (SIEN), a company that deals in breast implants, started its IPO today.
Sientra stock trades on the NASDAQ Global Select Market under the SIEN stock ticker. SIEN is priced at $15 a share and the IPO includes 5,000,000 shares of common stock. Underwriters also have the option of purchasing an additional 750,000 shares of common stock for $15 a share. The offer is expected to close on November 3, 2014.
Piper Jaffray and Stifel are book-running managers for the Sientra IPO. Leerink Partners and William Blair are working as co-managers for it. Read
Oct 27, 2014, 12:45 pm EDT
Roku, which makes a leading device for streaming online video, is preparing for an initial public offering, according to a report in the Wall Street Journal (paywall) last Friday. The company is reportedly in discussions with underwriters like Bank of America (BAC) and Citigroup (C). While most of the details are still sketchy, the timing looks good for a Roku IPO.
As seen with last summer’s GoPro (GPRO) offering, there is plenty of investor interest in innovative consumer electronics companies. Since GPRO pulled off its IPO in late June, the shares clocked a return of nearly 200% before slipping some in October.
Can a Roku IPO can do something similar? Perhaps so. Read
Oct 24, 2014, 2:07 pm EDT
When the markets go into correction mode, recent initial public offerings get whacked. Because IPOs tend to carry more risk, investors are more likely to dump them when fear is high.
And recently, we’ve gotten a pretty stark reminder of that.
Over the past few weeks, a number of IPOs have been bludgeoned pretty hard. Consider that year-to-date, roughly half of the 222 U.S.-listed IPOs are in negative territory, with 81 currently sporting double-digit losses. Read
Oct 20, 2014, 2:32 pm EDT
Nine new stocks were expected to hit the markets last week, but only five ended up completing their offerings, and of those, just two posted positive first-day returns.
You can blame a whole lot of market volatility for that.
This week is a little more reserved, with only five new stocks coming live … and of them, most are small, and one (EndoStim, which you can read about here) is a holdover from last week. For now, let’s take a look at the newest offerings: Read
Oct 20, 2014, 9:33 am EDT
It has been about a month since Alibaba (BABA) pulled off the biggest IPO in history, raising more than $25 billion. Yet the company has not escaped the wrenching correction in the equities markets. So far, Alibaba stock is off 10% from its high.
But this could be a nice entry point for investors interested in Alibaba stock. The fact is that BABA stock should benefit from strong long-term trends in its businesses, such as its ecommerce marketplaces, the cloud and payments.
There may also be a nice short-term boost from the expiration of the quiet period — which comes on October 29. Read