Candygram for January 2015

2015 is off to a pretty good start with 13 deals priced in the last two weeks of January. Shake Shack (SHAK) got most of the attention and a major "first day pop" but gene therapy player Spark (ONCE) enjoyed similar success (and a $1B market capitalization.)

Enterprise software player Box (BOX) did well and is one we are following. It was added recently to the IPO Folio as well after it settled down a bit. We may see more volatility around coverage initiations and then lockup expirations.

Sadly Presbia (LENS) is a clear demonstration of some fuzzy vision in banker selection. They went with only one bank on the cover (Jefferies) when they should have had at least three or four. After a low pricing and trading down sharply post-IPO the stock sits at $7, about 50% of where they expected to be.

IPOC_Pricings_JAN_2015

There were 10 new filings during January helping to keep the pipeline full. There are already 9 deals in marketing now for February so if the market holds together we stand a good chance of adding to early momentum in the IPO market.

IPOC_Filings_JAN_2015

We'll be taking a closer look at Invitae (NVTA) given the emerging commercialization of gene-based approaches to healthcare management and drug development. With a name like Wowo (WOWO) we'll have to check out that one too. The online retail sector in China has fielded a wide range of success and failures from the star Vipshop (VIPS) with a $12B market capitalization to the also-rans of Mecox Lane (MCOX) and Lightinthebox (LITB).