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IPOs Popping En Masse Is Latest Stage Of Market Euphoria

Courtesy of ZeroHedge View original post here.

By Drew Singer, Bloomberg ECM commentator and reporter

Price surges of 50% or higher greeted a majority of stocks that debuted Wednesday, expanding a global frenzy for equity offerings that has raised nearly $50 billion in two weeks.

Nine companies went public in New York, tying for the third-busiest session of 2021. Eight of them are traded higher, with top performers including a 46% pop by Roger Federer-backed shoemaker On Holding AG and a 59% jump in coffee maker Dutch Bros Inc. They’re some of the biggest gainers across the U.S. stock market Wednesday among firms with a market cap exceeding $50 million.

The euphoric reception follows a drop of more than 1% in the S&P 500 since the U.S. Labor Day holiday on Sept. 6, right as these IPOs were being marketed to investors. It should be seen as an endorsement of the broader market, according to Gene Song, global head of equity capital markets at Alpine Global Management LLC and former head of institutional equity sales at Citigroup Inc.

The IPO calendar and overwhelming strong demand is a direct reflection and key indicator overall for the sentiment of the market,” he said in an interview. “Market sentiment still remains extremely strong regardless of what we have been seeing in overall indices.”

This month alone, IPOs and secondary offerings have raised nearly $50 billion globally for corporate issuers and their largest shareholders, according to data compiled by Bloomberg. While book builds began in Wednesday’s IPOs last week, faster-moving secondary offerings raised more than $20 billion during the first four days back from the holiday weekend in the U.S. alone.

As U.S. IPOs join the frenzy this week, their pops have been bigger and more widespread than usual. Among Wednesday’s other new listings, Dice Therapeutics Inc. roughly doubled, Definitive Healthcare Corp. jumped 60%, Tyra Biosciences Inc. climbed 63%, Procept BioRobotics Corp. rose by 68% and Thoughtworks Holding Inc. increased 40%. By contrast, this year’s U.S. IPOs have popped by an average of 9.4%.

The price action follows a broadly positive response to the public offerings in these new listings. A majority of the IPOs priced above their marketed offering ranges and eight were upsized, according to data compiled by Bloomberg. Over the past 12 months, less than 20% of IPOs priced above-range.

More ECM situations Bloomberg is following:

  • Blue Apron Soars After Funding Plan Removes Super-Voting Shares — Blue Apron Holdings Inc. surged by the most since early in the pandemic on Wednesday after the subscription meal-kit maker disclosed plans to raise capital and eliminate shares with outsize voting power.

  • Amazon-Backed Rivian Aims to Raise as Much as $8B in IPO: Rtrs — Amazon-backed electric vehicle maker Rivian Automotive is aiming to raise between $5 billion and $8 billion in IPO, Reuters reports, citing people familiar with the matter.

Performance of Yesterday’s Additional Offerings:

Academy Sports & Outdoors (ASO US) +2.61% vs offering price

  • Deal value pre-shoe: $834.4 million

  • Offer price: $44.75

  • Secondary shares: 18.6 million

  • Pricing discount: -1.24%

  • Industry: Retail – Discretionary

  • Bookrunners: Credit Suisse (Left), BofA Securities, JP Morgan Securities and KKR Capital Markets

Live Nation Entertainment (LYV US) -0.41% vs offering price

  • Deal value pre-shoe: $455.3 million

  • Offer price: $86.90

  • Primary shares: 5.24 million

  • Pricing discount: -2.01%

  • Industry: Leisure Facilities & Services

  • Bookrunner: Goldman Sachs (Sole)

API Group (APG US) +0.89% vs offering price

  • Deal value pre-shoe: $400 million

  • Offer price: $20.25

  • Primary shares: 19.8 million

  • Pricing discount: -1.65%

  • Industry: Industrial Support Services

  • Bookrunners: Citigroup (Left), Barclays Bank Plc (Us), BofA Securities, JP Morgan Securities, RBC Capital Markets, Robert W. Baird and

UBS Investment Bank

  • Leslie’s (LESL US) +2.77% vs offering price

  • Deal value pre-shoe: $348 million

  • Offer price: $22

  • Secondary shares: 15.8 million

  • Pricing discount: -1.7%

  • Industry: Wholesale – Discretionary

  • Bookrunners: Morgan Stanley (Left), BofA Securities, Goldman Sachs, Jefferies and Nomura Securities International

CS Disco (LAW US) +1.7% vs offering price

  • Deal value pre-shoe: $291.5 million

  • Offer price: $53

  • Secondary shares: 5.5 million

  • Pricing discount: -0.43%

  • Industry: Software

  • Bookrunners: JP Morgan Securities (Left), BofA Securities, Citigroup Global Markets, Jefferies and Piper Sandler

BRP Group (BRP US) +14.1% vs offering price

  • Deal value pre-shoe: $244 million

  • Offer price: $30.50

  • Primary Class A: 8 million

  • Pricing discount: -2.46%

  • Industry: Insurance

  • Bookrunners: JP Morgan Securities (Left), BofA Securities, Jefferies, Morgan Stanley, Wells Fargo Securities and William Blair

Hut 8 Mining (HUT US) +2.57% vs offering price

  • Deal value pre-shoe: $150.1 million

  • Offer price: $8.55

  • Primary shares: 17.6 million

  • Pricing discount: -17.6%

  • Industry: Technology Services

  • Bookrunner: Canaccord Genuity (Sole)

Par Technology (PAR US) +10.2% vs offering price

  • Deal value pre-shoe: $50 million

  • Offer price: $56

  • Primary shares: 892,900

  • Pricing discount: -0.02%

  • Industry: Technology Hardware

  • Bookrunner: Goldman Sachs (Sole)

Avalo Therapeutics (AVTX US) +5% vs offering price

  • Deal value pre-shoe: $27.5 million

  • Offer price: $2.20

  • Primary shares: 12.5 million

  • Pricing discount: -14.1%

  • Industry: Biotech & Pharma

  • Bookrunners: Jefferies (Left) and RBC Capital Markets

NXT-Id (NXTD US) -6.76% vs offering price

  • Deal value post-shoe: $12.5 million

  • Offer price: 45 cents

  • Primary shares: 24.3 million

  • Pricing discount: -1.85%

  • Industry: Technology Hardware

  • Bookrunner: AGP/Alliance Global Partners

Nuwellis (NUWE US) +6.8% vs offering price

  • Deal value pre-shoe: $8.71 million

  • Offer price: $2.50

  • Primary shares: 3.48 million

  • Industry: Medical Equipment & Devices

  • Bookrunner: Ladenburg Thalmann (Sole)


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