Second Quarter 2014 IPO Candygram

Whirly lollipop on orange background.

It’s been a solid Q2 for the IPO market which added 83 new names to our IPO Candy universe. (Q1 produced 67 new names for a total of 150 so far in 2014!) The breakdown based on sector came to – Healthcare (22), Technology (16), Energy (13), Finance (11), China (10), Industrial (6) and Consumer (5). We’ve included the full list organized by sector later in this note.

We begin Q3 with the market with the Dow hovering near 17,000 and a feeling that the US economic expansion will continue along with the low interest rate backdrop – a good recipe for new stock offerings. As usual there will be some jitters around second quarter earnings reports and possible mid-term election uncertainty coming after the summer months. Fundamentals however look fairly solid.

This quarter we have continued to tweak our classification system to make it easier to manage and evaluate IPO companies. In addition we have expanded the number of investment themes track. This is far from simple bookkeeping since many of the metrics we want to add to IPO Candy analysis differ from segment to segment. For example we want to track shifts in booking momentum at software/SaaS firms but can’t do that without a “clean” segment of companies.

The Candygram for the second quarter of 2014 includes the following sections:

  1. IPO Pricings in Q2 by Industry
  2. Performance: Class of 2014
  3. Performance: Class of 2013
  4. Performance: Class of 2012
  5. IPO Candy Universe by Date

For access to the full version please use this link: IPO Candygram 2Q 2014 Full Version. (Requires MELTED CHOCOLATE Membership.)

Current Statistics

After updating our ecosystem with new names and removing a few that were acquired there are some notable figures:

  1. We have 618 companies in our ecosystem with a total market capitalization of $1.27 trillion!
  2. Combined revenues for the companies comes to $653M. (A fairly high number of biotechnology companies skews the market cap to revenue ratio higher.)
  3. The average change of 63% for companies from their IPO price very attractive. Even for companies that came public five years ago this is still a great return.

There’s a wealth of data to review in the tables. As soon as our big industry data project is complete we will publish separate tables for the major categories. We do entertain requests for customized views by subscribers but at this point there is some up-charge for the service based on how complicated it is.

2Q IPO Pricings by Industry

Technology & Internet

GoPro (GPRO) makes the HERO line of cameras; premium accessories, and mounts comprising equipment-based mounts, such as helmet, handlebar, roll bar, and tripod mounts that enable consumers to capture content while engaged in a range of activities, as well as mounts that enable customers to wear the mount on their bodies consisting of wrist housings, chest harnesses, and head straps. GoPro was founded in 2004 and is headquartered in San Mateo, California.

MobileIron (MOBL) provides an IT platform for enterprises to secure and manage mobile applications, content, and devices. The company was founded in 2007 and is headquartered in Mountain View, California.

Arista Networks (ANET) provides cloud networking solutions for datacenter and cloud computing environments. The company offers extensible operating systems, a set of network applications, and Ethernet switches. Arista Networks, Inc. was founded in 2004 and is headquartered in Santa Clara, California.

TrueCar (TRUE) operates data-driven online platform for consumers, affinity marketing partners and car dealers through its TrueCar.com website. It enables users to obtain market-based pricing data on new and used cars, as well as to connect with its network of dealers. The company was founded in 2005 and is based in Santa Monica, California.

Zendesk (ZEN) provides software-as-a-service customer service platform for organizations to manage one-on-one customer interactions and offers tools to understand customers and track the efficiency and effectiveness of the customer service. Zendesk was founded in 2007 and is headquartered in San Francisco, California.

Imprivata (IMPR) offers an integrated enterprise single sign-on, authentication management, and workflow automation platform that addresses various security and productivity challenges faced by hospitals and other healthcare organizations. Imprivata, Inc. was incorporated in 2001 and is headquartered in Lexington, Massachusetts.

Materialise NV (MTLS) provides additive manufacturing software and 3D printing services in Europe, the Americas, and Asia. The company operates in three segments: 3D Printing Software, Medical, and Industrial Production. The company was founded in 1990 and is headquartered in Leuven, Belgium.

GrubHub (GRUB) connects local restaurants with hungry diners in approximately 600 cities and focused on handing restaurant pick-up and delivery orders. GrubHub has mobile applications for iPhone, iPad, and Android devices and helps businesses address inefficiencies in food ordering and associated billing. GrubHub also has an aggregated database of approximately 275,000 menus from restaurants in all 50 states. GrubHub Inc. is headquartered in Chicago, Illinois.

Five9 (FIVN) offers a virtual contact center cloud platform that enables its clients to manage these customer interactions across various channels, including voice, chat, email, Web, social media and mobile, and connects them to an appropriate agent. Five9 was founded in 2001 and is based in San Ramon, California.

Markit (MRKT) provides pricing and reference data, indices, and valuation and trading services across multiple asset classes and geographies through both direct and third-party distribution channels. Its products and services are used for independent valuations, research, trading, and liquidity and risk assessments. Customers include banks, hedge funds, asset managers, central banks, regulators, auditors, fund administrators, and insurance companies. Markit was founded in 2003 and is headquartered in London, the United Kingdom.

Viggle (VGGL) provides an interactive platform to create engagement with TV content and targeted advertising through a loyalty program that rewards users for watching television. Viggle Inc. was incorporated in 1994 and is based in New York, New York.

Sabre Corporation (SABR) provides technology solutions to the travel and tourism industry. It distributes travel content from travel suppliers to online and offline travel agents. Sabre also operates Travelocity in the online consumer travel e-commerce businesses, which provide travel content and booking functionality primarily for leisure travelers. Sabre Corporation was founded in 2006 and is headquartered in Southlake, Texas.

Paycom Software (PAYC) makes a human capital management (HCM) software solution delivered as software-as-a-service application. Paycom was founded in 1998 and is headquartered in Oklahoma City, Oklahoma.

IMS Health (IMS) provides information, services, and technology including prescription data and an array of healthcare measurement solutions around their growing database. The company was founded in 1954 and is based in Danbury, Connecticut. The company is a former subsidiary of Nielsen Media Research (NLSN).

Opower (OPWR) software analyzes energy data and presents personalized insights to consumers in order to motivate reductions in energy consumption. Opower was founded in 2007 and is headquartered in Arlington, Virginia.

The Rubicon Project (RUBI) supplies an automated advertising platform is used by approximately 700 publishers and applications to transact with 100,000 advertising brands worldwide. The platform consists of a real-time cloud and big data computing system that powers and optimizes a marketplace for the real time trading of digital advertising between buyers and sellers. The Rubicon Project, Inc. was founded in 2007 and is headquartered in Los Angeles, California.

Moko Social (MOKO) provides proprietary mobile social networks and community/chat products, as well as owns proprietary mobile performance ad network. Moko Social Media Limited is based in Highgate, Australia.

Healthcare & Biotechnology

Signal Genetics (SGNL) provides diagnostic services that assists physicians in decision making for the care of patients suffering from cancer. Signal Genetics, Inc. was founded in 2010 and is headquartered in New York, New York.

Ardelyx (ARDX) is developing small molecule therapeutics to treat cardio-renal, gastrointestinal (GI), and metabolic diseases. Ardelyx was founded in 2007 and is headquartered in Fremont, California.

ZS Pharma (ZSPH) is developing non-absorbed drugs to treat renal, cardiovascular, liver, and metabolic diseases. The company was founded in 2008 and is headquartered in Coppell, Texas.

Kite Pharma (KITE) is developing novel cancer immunotherapy products to treat solid and hematological malignancies. Kite Pharma, Inc. was founded in 2009 and is headquartered in Santa Monica, California.

Zafgen (ZFGN) is developing drugs to treat obesity and obesity-related disorders. Zafgen was founded in 2005 and is headquartered in Cambridge, Massachusetts.

Minerva Neurosciences (NERV) is developing product candidates for the treatment of central nervous system diseases. The company was founded in 2007 and is headquartered in Cambridge, Massachusetts.

Adeptus Health (ADPT) focuses on operating a network of independent freestanding emergency rooms in the United States. It operates 32 facilities located in the Houston, Dallas/Fort Worth, San Antonio, and Austin of Texas, as well as Colorado Springs and Denver of Colorado. The company was founded in 2002 and is based in Lewisville, Texas.

Amphastar Pharmaceuticals (AMPH) develops generic and proprietary pharmaceuticals, delivery systems, and active pharmaceutical ingredients. The company focuses on injectable, inhalation, and other categories of pharmaceutical products. The company was founded in 1996 and is headquartered in Rancho Cucamonga, California.

K2M Group (KTWO) develops proprietary complex spine technologies and techniques including implants, disposables, and instruments primarily to hospitals for use by spine surgeons to treat spinal pathologies, such as deformity, trauma, and tumor. K2M Group was founded in 2004 and is headquartered in Leesburg, Virginia.

Alder Biopharma (ALDR) is developing monoclonal antibodies for the prevention of migraine and for the treatment of rheumatoid arthritis and psoriatic arthritis. Alder Biopharma was incorporated in 2002 and is headquartered in Bothell, Washington.

SCYNEXIS (SCYX) is developing anti-infectives to address unmet therapeutic needs. SCYNEXIS was founded in 1999 and is headquartered in Durham, North Carolina.

Aldeyra Therapeutics (ALDX) develops drug candidates for capturing and removing free aldehydes to treat and prevent diseases, and slow the progression of chronic disease. Aldeyra Therapeutics, Inc. was founded in 2004 and is based in Burlington, Massachusetts.

Quotient (QTNT) provides blood transfusion diagnostic products. The company provides tests for blood grouping and serological disease screening. Quotient Limited was founded in 2007 and is based in the United Kingdom.

Lombard Medical (EVAR) makes an endovascular stent-graft for the treatment of an abdominal aortic aneurysm with angulation at the neck of the aneurysm of up to 90 degrees. The company was founded in 2000 and is based in Didcot, United Kingdom.

Parnell Pharmaceuticals (PARN) develops animal health solutions in both Companion Animal and Production Animal markets. The company was founded in 1986 and is headquartered in Alexandria, Australia.

Radius Health (RDUS) is developing therapeutics for patients with osteoporosis and other serious endocrine-mediated diseases. The company was founded in 2003 and is headquartered in Cambridge, Massachusetts.

Vital Therapies (VTL) is developing a cell-based therapy for the treatment of acute liver failure. Its product candidate includes ELAD system, an extracorporeal bio-artificial liver therapy that is in Phase III clinical trials to allow the patient’s own liver to regenerate to a healthy state, or to stabilize the patient until transplant. Vital Therapies was founded in 2003 and is headquartered in San Diego, California.

TriVascular Technologies (TRIV) offers a stent graft platform for the treatment of abdominal aortic aneurysms through minimally invasive endovascular aortic repair. TriVascular Technologies was incorporated in 2007 and is headquartered in Santa Rosa, California.

Cerulean Pharma (CERU) develops nanopharmaceutical product candidates in the areas of oncology and other diseases in the United States. Cerulean Pharma Inc. was incorporated in 2005 and is based in Cambridge, Massachusetts.

Phibro Animal Health (PAHC) provides animal health and nutrition products to the poultry, swine, cattle, dairy, and aquaculture markets. The company also manufactures and markets performance products for use in the personal care, automotive, industrial chemical, and chemical catalyst industries. Phibro Animal Health Corporation is headquartered in Teaneck, New Jersey.

Adamas Pharmaceuticals (ADMS) is targeting chronic disorders of the central nervous system. Adamas Pharmaceuticals was founded in 2000 and is headquartered in Emeryville, California.

Corium International (CORI) develops specialty pharmaceutical products based on transdermal delivery systems or patches for a variety of indications including hypertension and chronic pain. The company was incorporated in 1995 and is headquartered in Menlo Park, California.

Consumer Leisure

Papa Murphy’s (FRSH) owns, operates, and franchises Take ‘N’ Bake pizza stores. As of May 2, 2014, it operated approximately 1,425 franchised and corporate-owned fresh pizza stores in 38 states, Canada, and the United Arab Emirates. The company was founded in 1981 and is based in Vancouver, Washington.

Sportsman’s Warehouse (SPWH) is an outdoor sporting goods retailer with stores offer camping products, fishing products and hunting and shooting products. As of May 3, 2014, the company operated 50 stores in 18 states. Sportsman’s Warehouse Holdings, Inc. was founded in 1986 and is headquartered in Midvale, Utah.

Zoe’s Kitchen (ZOES) is a fast casual Mediterranean cuisine restaurant chain. As of February 24, 2014, the company and its franchisees operated 111 restaurants in 15 states. Zoe’s Kitchenwas founded in 1995 and is based in Plano, Texas.

La Quinta Holdings (LQ) owns, operates, and franchises select-service hotels under the La Quinta brand. The company was founded in 1968 and is headquartered in Irving, Texas.

The Michaels Companies (MIK) is a chain of arts and crafts specialty retail stores for arts, crafts, scrapbooking, floral, framing, home décor, seasonal offerings, and children’s hobbies. The Michaels Companies is based in Irving, Texas.

Finance & Real Estate

Bankwell Financial (BWFG) is a community bank that provides a range of personal and business banking products and services primarily in the Fairfield County, Connecticut. Bankwell Financial is based in New Canaan, Connecticut.

ServisFirst Bancshares (SFBS) provides consumer and commercial banking services across 10 full-service banking offices in Jefferson, Shelby, Madison, Montgomery, and Houston counties in the metropolitan statistical areas (MSAs) of Birmingham-Hoover, Huntsville, Montgomery, and Dothan, Alabama; and Pensacola-Ferry Pass-Brent, Florida. ServisFirst Bancshares was founded in 2005 and is headquartered in Birmingham, Alabama.

Investar (ISTR) is a bank operating in 10 locations, including Baton Rouge, New Orleans, Lafayette, and Hammond, Louisiana. The company was founded in 2006 and is headquartered in Baton Rouge, Louisiana.

Ares Management (ARES) is an alternative asset manager with operations in credit, direct lending, private equity and real estate. Ares Management was founded in 1997 and is headquartered in Los Angeles, California.

Moelis & Company (MC) is an investment bank advising clients in the areas of mergers and acquisitions, recapitalizations and restructurings, and other corporate finance matters. Moelis & Company was founded in 2007 and is based in New York, New York.

City Office REIT (CIO) is an equity real estate investment trust. The fund invests in the real estate markets of the United States. It acquires, own and operate high-quality office properties. City Office REITvwas formed in November 26, 2013 and is domiciled in the United States.

Farmland Partners (FPI) owns and seeks to acquire primary row crop farmland located in agricultural markets throughout North America. As of June 23, 2014, its portfolio consisted of 40 farms with approximately 23,000 acres in Illinois, Nebraska, and Colorado. The company was founded in 2013 and is Westminster, Colorado.

Ally Financial (ALLY) is an automotive financial services company (the old GMAC) and provides an array of financial products and services to automotive dealers and their customers in the United States. In addition, its subsidiary, Ally Bank, offers savings and money market accounts, certificates of deposit, interest-bearing checking accounts, and individual retirement accounts directly to consumers. Ally Financial Inc. was founded in 1919 (as part of GM) and is based in Detroit, Michigan.

1347 Property Insurance (PIH) provides residential property and casualty insurance products to individuals in Louisiana. The company was founded in 2012 and is based in Baton Rouge, Louisiana.

Century Communities (CCS) is a homebuilder serving metropolitan markets in Colorado. Austin and San Antonio, Texas and Las Vegas, and Nevada metropolitan areas. As of April 1, 2014, it owned and controlled approximately 99 communities consisted of 10,095 lots. Century Communities was founded in 2000 and is based in Greenwood Village, Colorado.

Heritage Insurance (HRTG) is a residential property and casualty insurance holding company in Florida.

China

Cheetah Mobile (CMCM) develops applications to optimize Internet and mobile system performance and provide real time protection against known and unknown security threats. Cheetah Mobile was incorporated in 2009 and is headquartered in Beijing, China. Cheetah Mobile is a subsidiary of Kingsoft Corporation Limited.

Tuniu (TOUR) is an online leisure travel company in China offering packaged tours, including organized tours and self-guided tours, and travel-related services for leisure travelers covering various countries, as well as all popular tourist attractions. Tuniu was founded in 2006 and is headquartered in Nanjing, China.

Zhaopin (ZPIN) provides online recruitment services including classified job postings and display advertisements, resume access services, mobile applications, and other online recruitment and career-related services in China. The company is a subsidiary of SEEK Limited, was founded in 1994 and is headquartered in Beijing, China.

Xunlei (XNET) operatings consumer Internet platform for digital media content in China. Xunlei was founded in 2005 and is based in Shenzhen, the People’s Republic of China.

JD.com (JD) is an online direct sales company (similar to Amazon.com) in China. It primarily offers electronics products; and general merchandise products, including audio and video products, and books. JD.com is headquartered in Beijing, China.

Jumei International (JMEI) is online retailer of beauty products including cosmetics, skin care and body care, cosmetic applicators, and fragrances in China. Jumei International was founded in 2009 and is headquartered in Beijing, China.

Leju Holdings (LEJU) provides online-to-offline (O2O) real estate services in China. These services include selling discount coupons and facilitating online property viewing, physical property visits, and pre-sale customer support for new residential properties and home furnishing sales. The company was incorporated in 2013 and is headquartered in Beijing, China. Leju Holdings Limited is a subsidiary of E-House (China) Holdings Limited.

Weibo Corporation (WB) is social media platform in China. Weibo Corporation was founded in 2009 and is headquartered in Beijing, China. Weibo Corporation is a subsidiary of SINA Corporation.

iKang Healthcare Group (KANG) provides preventive healthcare solutions in China. The company offers a range of medical examinations, which comprise internal, gynecology, ophthalmology, ENT, dental, lab tests, EKG, ultrasound, and X-ray examination items. As of December 31, 2013, it owned and operated a network of 42 self-owned medical centers. iKang Healthcare Group is headquartered in Beijing, China.

Tarena (TEDU) supplies information technology (IT) professional education services in topics like Java, C++, software testing, PHP, embedded, Android, .NET, iOS, and Linux through part-time and full-time classes in China. The company was founded in 2002 and is headquartered in Beijing, China.

Energy

Viper Energy Partners (VNOM) develops oil and natural gas properties in the Permian Basin in West Texas. Viper Energy Partners LP was founded in 2013 and is based in Midland, Texas.

Foresight Energy Partners (FELP) offers coal mining, production, transportation, and distribution services. It provides thermal, metallurgical, and bituminous coal. The company was founded in 2006 and is based in St. Louis, Missouri.

Eclipse Resources (ECR) develops oil and natural gas properties in the Appalachian Basin. The company’s estimated proved reserves consisted of 109.6 billion cubic feet of natural gas equivalent. Eclipse Resources was founded in 2011 and is headquartered in State College, Pennsylvania.

Abengoa Yield (ABY) owns renewable energy, conventional power, and electric transmission line contracted assets. The company was incorporated in 2013 and is based in Leeds, United Kingdom.

Memorial Resource Development (MRD) is independent energy company operating primarily in the Cotton Valley formation in North Louisiana and East Texas, as well as the Rocky Mountains. Memorial Resource Development Corp. was founded in 2014 and is based in Houston, Texas.

PBF Logistics (PBFX) owns and operates crude oil and refined petroleum products terminals, pipelines and storage facilities. The company was founded in 2012 and is headquartered in Parsippany, New Jersey.

NextEra Energy (NEP) owns and operates wind and solar energy projects. The company was founded in 2014 and is based in Juno Beach, Florida.

Dorian LPG (LPG) owns and operates LPG shipping vessels. The company was founded in 2013 and is based in Stamford, Connecticut.

GasLog Partners LP (GLOP) acquires, owns, and operates liquefied natural gas (LNG) carriers with cargo capacities greater than 75,000 cbm. The company is based in Monaco. GasLog Partners LP operates as a subsidiary of GasLog Ltd.

Enable Midstream Partners (ENBL) operates and develops natural gas and crude oil infrastructure assets in the United States. The company is based in Oklahoma City, Oklahoma.

Nordic American Offshore Ltd. (NAO) owns and operates platform supply vessels (PSV). The company was incorporated in 2013 and is based in Hamilton, Bermuda.

Parsley Energy (PE) develops energy assets in Permian Basin region of West Texas. The company was founded in 2008 and is headquartered in Midland, Texas.

Superior Drilling Products (SDPI) makes diamond compact drill bits and drill string tools for the oil, natural gas, and mining services industries. Superior Drilling Products was founded in 1999 and is headquartered in Vernal, Utah.

Industrial

Aspen Aerogels (ASPN) makes a range of specialty aerogel insulation formulations used in applications like high temperature steam pipes, vessels and equipment, aerospace and defense systems, fire barriers, and welding blankets, and cryogenic pipelines. Aspen Aerogels was founded in 2001 and is headquartered in Northborough, Massachusetts.

Trinseo (TSE) makes standard, specialty, and customized emulsion polymers and plastics. It operates through four segments: Latex, Rubber, Styrenics, and Engineered Polymers. Trinseo is based in Berwyn, Pennsylvania.

Tecogen (TGEN) makes systems that produce electricity, hot water, and air conditioning for commercial installations and buildings, and industrial processes. The company offers cogeneration units that supply electricity and hot water; chillers that provide air-conditioning and hot water; and high-efficiency water heaters. The company is headquartered in Waltham, Massachusetts.

ServiceMaster (SERV) offers termite and pest control services to homeowners. They also provide home warranty plans that cover the repair or replacement of household systems and appliances. ServiceMaster Global Holdings, Inc. is headquartered in Memphis, Tennessee.

TCP International (TCPI) makes a broad range of lighting products and accessories including compact fluorescent lamps (CFLs); directional and omni-directional light emitting diodes (LEDs) and halogen lights. TCP International is based in Shanghai, China.

SunEdison Semiconductor (SEMI) provides polished wafers for applications in memory, analog, radio frequency (RF) devices, digital signal processors, and power devices. SunEdison Semiconductor was founded in 1959 and is headquartered in St. Peters, Missouri.

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