Four IPOs fail to price
Breast implant maker GC Aesthetics (GCAA) did not price as scheduled, but will assess its IPO on a day-to-day basis. Citing pressure on energy investors and implying valuation pushback, Carlyle-backed Philadelphia Energy Solutions (PESC), the third-largest IPO of the week, postponed as well. Benitec Biopharma (BNTC) postponed its IPO, likely reflecting its early stage and a lack of in-human efficacy data. RiverBanc Multifamily Investors (RMI), originally on the IPO calendar for last week, has officially postponed its IPO, possibly reflecting valuation sensitivity.
The GOOD news -
So far this year, 127 companies have come public, and the average first-day pop has been about 16%. In the past two weeks, 8 of 12 IPOs ended their first day down or flat. The downward trend accelerated this week with an average first-day return of just 6%. Three biotech companies had successful IPOs and averaged 22% returns on the first day, but two consumer companies and one energy company launched with an average first-day return of -11%. The average return was 16% in a week that saw the Nasdaq fall 2%.
