Triad Securities Releases 3rd Qtr Report on IPO & Secondary Performance

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Brokerage firm releases Report outlining the top IPO & Secondary performances for the third quarter.

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Clients appreciate our consensus on the larger more well-known deals; they also rely on us to make them aware of the smaller deals that may get over-looked.

On Oct. 1, 2015, Triad Securities released a summary report outlining IPO & Secondary (SPO) performances from this year's third quarter. The highlights showed Healthcare stocks topping the IPO leader boards, exceeding the Consumer Group, which had the best performance in the previous quarter.

Some of the companies from the sector with the top performances included Global Blood Therapeutics (GBT), opening up 73% from the offering price, ProNai Therapeutics (DNAI) which opened up 69%, and NantKwest Inc. (NK) opening up 67%.

For the IPO book-runners, Morgan Stanley grabbed the lead underwriter position for GBT which put them at the top of the performance list among IPO bookrunners.

Leading the secondary performances were Leerink Partners and Cowen and Co.

The report states that rising volatility throughout the marketplace led to a reduction in IPOs and secondaries during the quarter. There were 40 companies that issued IPOs on domestic exchanges, which is down 46% from the total of 74 IPOs launched in the second quarter.

Even though September had the least amount of IPOs, it proved to have the best performance with deals opening up at an average 19.1% above their offering prices. Deals on average for the quarter opened 13% higher than the offering prices, ranking slightly lower than the average of 17% for the second quarter.

Secondary pricing saw a 37% drop in the third quarter with 123 public companies issuing secondary public offerings down from 196 in the previous quarter. September was again the highest performing month with an average opening of about 1.8% above the offering prices. It was found that SPO deals were also down for the quarter with 1.6% opening higher than the offering prices down from the previous 1.9% in the second quarter.

Healthcare ended up leading the sector in terms of number of deals with the Financial sector coming in second for both the IPO and SPO markets.

The report states: “Publicly traded companies seeking funds for working capital and general corporate purposes – as well as for ongoing exit strategies for owners – continued to access the secondary market in 3Q15, though not as extensively as they did in 1H15. Indeed, as volatility increased later in the quarter, the number of deals fell sharply.

Assuming the market stabilizes in the next quarter, there could be pent-up demand from both companies and investors for transactions in early 2016.”

"In the coming weeks clients are looking forward to see how Albertsons (ABS) and First Data Corp (FDC) perform and are eagerly waiting to see when SoulCycle and Ferrari will be dated. Clients appreciate our consensus on the larger more well-known deals; they also rely on us to make them aware of the smaller deals that may get over-looked," said Scott Daspin, Director of Prime Brokerage Sales.

The full report can be found here.

About Triad Securities

Triad Securities is a broker-dealer offering superior and individualized prime broker services to professional traders and hedge funds. It offers direct access to algorithms, brokers, and exchanges. Triad has also created the "IPO Dashboard" system to provide Triad clients with a centralized source for accessing all of Triad's New Issue Reports and an interactive database containing current IPO and secondary deal data as well as past performance analyses. To learn more about their state-of-the-art technology and competitive transaction charges, visit http://www.triadsecurities.com.

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Scott Daspin
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