The holiday season has officially hit the IPO markets as evidenced by last weeks offerings. While all three names last week were successful in launching, they had to offer at discounts to their proposed ranges. The three names were able to raise $735 million from a hesitant IPO market. It may not be that investors didn't like the name, just likely the normal seasonality of the markets along with the second rate hike in only 10 years by the Fed.
trivago (NASDAQ: TRVG) was the favorite of the media, along with the IPO markets. It was able to raise the $287 million, offering 26.1 million shares at $11. This was under the $13 to $15 range they had hoped for. With this pricing the company has a market capitalization of $3.9 billion which was 20% lower than anticipated. While it may be the seasonality of the markets, analysts also not that it could be investors unwillingness to invest in a company that has yet to turn a profit and spend almost all of its revenue on advertising.
WildHorse Resource Development (NYSE: WRD) also had to price well below their initial pricing range. The company was forced to offer their 27 million shares at $15 instead of the $19-21 range they were hoping for. Shares have sold off slightly as oil struggled last week.
The last one of the group (and the smallest) was TiGenix (NYSE: TIG) which was able to raise $36 million by offering their shares at $15.50, also below their anticipated offering price. Shares were wild on the open as they sold off all the way down to $11.70 before recovering.
This week ahead there are no offerings and likely will not be any last minute offerings as well.