Wednesday IPO Review and a Sneak-Peek for Thursday April 16

Three IPOs hit exchange floors today, Moelis & Co MC, Opus Bank OPB, and Trivascular Technologies TRIV.

Trading opened with mixed results, seeing Moelis & Company and Opus Bank head south after opening, while Trivascular Technologies packed on 18%.

Trivascular Technologies, today’s performance winner, priced its IPO at $12.00 per share.  Opening lower at $11.35, shares rebounded in early trading, putting IPO investors in the black seven minutes after shares began trading hands.  Maintaining a linear price path through normal trading hours, Trivascular closed on its high at $13.45, returning over 18% from the open and 12% for IPO investors. 

It issued 6.5 million shares for $12.00 through Credit Suisse and J.P. Morgan.  Proceeds are $78 million, slated for repayment of $3.5 million to Boston Scientific BSX for a promissory note, to expand sales and marketing efforts, and to fund additional research and development.

Specializing in developing and commercializing innovative medical devices to further the scope of minimally invasive procedures of abdominal aortic aneurysms, Trivascular’s Ovation System provides an effective, FDA-approved, alternative to conventional endovascular aortic repair.

Moelis & Company priced its IPO at $25 this morning, below its range of $27 to $29.  Shares opened high, at $27, before stumbling to the lows to close at $26.15.  After the first day of trading, IPO investors are up 4%. Underwriters are Goldman Sachs, J.P. Morgan, Moelis & Company, Morgan Stanley, and UBS Securities.

Issuing 6.5 million share, Moelis & Company raised $162.5 million.  The company intends to use proceeds to purchase old shares of the company from the limited partnership and make cash distributions to recipients who received stock in exchange for old partnership units.

Moelis & Company is a global investment bank that provides a suite of services to clients including financial advising, capital raising, and asset management. 

Opus Bank priced its 5.1 million share, $153 million offering at $30, below the $31 to $34 expected range.  Shares opened at $30 and slid throughout the day the close at $29.50.  Underwriters are Credit Suisse, J.P. Morgan, Keefe, Bruyette & Woods, and Sandler O’Neill & Partners.

According to the bank’s most recent filing, proceeds are intended to, “support our growth in the western U.S. region, as well as for general corporate purposes and a contribution to the Opus Community Foundation.”

The company offers bank products to small and mid-sized companies, entrepreneurs, real estate investors, professionals, and retail consumers.  It also offers cash management and treasury solutions such as deposits.  Loans offered include industrial, commercial real estate, and residential, multi-family residential, and jumbo. 

Opus operates offices in the Seattle area and southern California with plans to expand into Encino, West Los Angeles, Corona del Mar, and Irvine.

Tomorrow’s IPOs

· Leju LEJU: 10 million American Depository Shares (ADS) expecting to price $10 to $12 via Credit Suisse and J.P. Morgan.

·  Quotient QTNT: 5 million shares are expecting to price $9 to $11 through UBS and Baird and Cowen.

·  Sabre SABR: NASDAQ approved 44.7 million shares for trading.  Shares are expected to price between $18 and $20 through Morgan Stanley, Goldman Sachs, and Bank of America Merrill Lynch.

·  Vital Therapies VTL: Bank of America Merrill Lynch and Credit Suisse are expected to price the 4.5 million share IPO between $13 and $15.

· Weibo WB: NASDAQ approved the 20M ADSs. Shares expect to price between $17 and $19 through Goldman Sachs and Credit Suisse.

· Sportsman’s Warehouse SPWH: Underwriters Credit Suisse and Goldman Sachs expect to price the 12.5 million share IPO between $11 and $13.

Disclosure: At the time of this writing, the author holds no positions in any previously mentioned securities. He may choose to hold long or short positions without notice in the future.