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US IPO Weekly Recap: Back to school for IPOs with seven launches and five filings

September 9, 2016

The IPO market swung back into action in the shortened post-Labor Day week with seven deals added to the calendar: two banks, three software providers, the first energy play in over a year and a biotech. Five companies submitted initial filings, including self-proclaimed unicorn Coupa Software and gene editing biotech CRISPR Therapeutics. 

The new IPO activity is supported by strong year-to-date performance (+33%), particularly from tech offerings (+105%), which hold the top two spots on 2016’s leaderboard with Acacia (ACIA; +363%) and Twilio (TWLO; +273%). 2015 tech IPO Apigee (APIC) announced its acquisition by Google for $17.40 per share (IPO'd at $17), capping an impressive rally from its low of $5.45 in February. The rest of the 2015 tech IPO class has also recovered; the 21 tech IPOs that raised over $50 million last year average a +28% return and 15 (76%) are above issue, compared to early February when the same group was down 22%, with just 6 (24%) above issue.

7 IPOs kick off a more active September
Ad-tech platform The Trade Desk (TTD) hopes to buck the trend of underperforming ad-tech debuts with its explosive growth, while mass notification platform Everbridge (EVBG) has a strong roster of customers and 30% growth in the 1H16. Bermuda’s largest bank, N.T. Butterfield & Son (NTB) has a sizeable wealth management business and plans to offer a 5.4% yield, as regional Tennessee bank  FB Financial (FBK) grew net income at a +33% CAGR (2011-2015). Being carved out of its parent, Noble Midstream Partners (NBLX) which initially postponed its November 2015 IPO, plans to raise $250 million and offer a 7.5% yield. Novan (NOVN), a late-stage biotech, aims to raise $45 million to further its pipeline of dermatological therapies. Lastly, Gridsum (GSUM) which offers automated keyword bidding in China set terms to raise $75 million.

Five more deals added to the well-rounded pipeline
Coupa Software, a cloud-based software provider that helps enterprises manage their spend filed for a $75 million offering. The unprofitable company recorded growth of 75% in the 1H16. Obalon Therapeutics, a medical device company developing an intergastric, gas-filled balloon to assist with weight loss, also filed for a $75 million IPO. CRISPR Therapeutics, a preclinical Swiss gene editing biotech backed by Bayer, filed to raise $90 million. Everspin Technologies, a provider of magnetic-based random access memory recorded 2% growth in the 1H16 and filed to raise $45 million. Polar Power, which manufactures DC generators for off-grid commercial usage, rounded out the week with its filing to raise $17 million.