IPO Market Sputters Into the Week of October 26

Ferrari N.V. (NYSE: RACE) raised $893 million after pricing at $52 a share, the top of its expected range. The stock got a first-day pop of 6% and finished the week up 8% over its offering price.

The stock getting the largest first-day pop (22%) was Multi Packaging Solutions International Ltd. (NYSE: MPSX) after pricing its shares below the expected range. Shares closed the week up by 22% as well.

Oasmia Pharmaceutical A.B. (NASDAQ: OASM) finally got its U.S. listing, but priced the IPO about 40% below the midpoint of its expected range, raising just $9 million. Dimension Therapeutics Inc. (NASDAQ: DMTX) priced its IPO 13% below the midpoint of its expected range and saw shares drop another 17% on the first day of trading. American Farmland Co. (NYSE: AFCO) priced 16% below its expected midpoint and dropped 13% on its first day of trading before recovering somewhat to close the week down 6%.

Two of last week’s IPOs were delayed until the coming week, and only one new company is on the schedule for the coming week.

Through the week ending October 16, IPO ETF manager Renaissance Capital reported that 152 IPOs have priced in the U.S. so far this year, down about 34% from a year ago. Total proceeds raised through last week equaled $28.1 billion, down about 62% compared with the same period in 2014. Of the 152 IPOs that have gone off this year, 71 have come from the healthcare sector. Last year’s IPO total came in at $85.2 billion, the highest total in the past 10 years. Renaissance Capital does not include “best efforts” or blank-check companies in its totals.

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One company that failed to launch last week was Adesto Technologies, which provides application-specific, non-volatile memory products optimized for the Internet of Things market. For its second attempt last week, the company increased the number of shares on offer from 4.1 million to 6.0 million and lowered the IPO price from a range of $10 to $12 to a fixed $7 per share price. At the new price the company expects to raise $42 million at an implied market cap of about $111 million. Joint bookrunners for the offering are Needham and Oppenheimer. Co-manager is Roth Capital. The IPO is listed for sometime next week and shares will trade on the Nasdaq under the ticker symbol IOTS.

Sole Elite Group, a China-based maker of shoe soles used in the manufacture of sports shoes, once more continues a weeks-long quest for entry to the public markets. The company plans to offer 3 million shares in an expected price range of $10 to $12 to raise $33 million at a fully diluted market cap of $198 million. Joint bookrunners for the offering are Dawson James and ViewTrade. The shares are shown as day-to-day and will trade on the Nasdaq under the ticker symbol SOLE.

The one new offering on next week’s schedule comes from MyoKardia, a clinical stage biopharmaceutical company pioneering a precision medicine approach to discover, develop and commercialize targeted therapies for the treatment of serious and neglected rare cardiovascular diseases. The company plans to offer 4.7 million shares in an expected price range of $15 to $17 to raise $75 million at an implied market cap of around $408 million. Joint bookrunners for the IPO are Credit Suisse and Cowen. Co-managers are Wells Fargo Securities and Wedbush PacGrow. Shares are set to price Wednesday and begin trading Thursday on the Nasdaq under the ticker symbol MYOK.

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