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Even as much of Wall Street winds down heading into the Christmas and New Years holidays, the IPO market was in full swing this week.
Last week’s IPOs all came out of the gate strong, but the majority have been selling off this week. The worst performer this week has been Momo (NASDAQ: MOMO), which is down nearly 20% from last Friday.
And checking in on the Renaissance IPO ETF (NYSEArca: IPO), which tracks companies that have completed their IPO within the last two years, shows that it’s now underperforming the S&P 500 by four percentage points.
It hasn’t helped that some of the biggest consumer discretionary IPOs have been selling off of late. This includes GoPro (NASDAQ: GPRO), El Pollo LoCo Holdings (NASDAQ: LOCO) and Wayfair (NYSE: W), which are all down more than 30% over the last three months.
Fortunately, there were no consumer discretionary names in this week’s batch of IPOs. With that, here were the top four IPOs from this week:
Best IPO Of The Week No. 1: Juno Therapeutics (JUNO)
Much like last week, Friday was the busiest day this week. And Juno was the undisputed winner. It hit the markets this morning and closed the day up more than 45%. Back in January, Jeff Bezos invested in Juno via his Bezos Expeditions. His investment arm also made investments in the likes of Twitter (NASDAQ: TWTR) and Workday (NYSE: WDAY) before they came public.
Juno is a $2.9 billion market cap biotech company. Its mission is to cure cancer by reshaping how the human immune system works. Their target patients are those with cancer that have had no success with radiation or chemotherapy. What the company is doing seems fairly exciting and there’s no doubt the market is huge; yet, it’s still generating no revenues.
Best IPO Of The Week No. 2: On Deck Capital (NYSE: ONDK)
On Deck started trading on Wednesday at an IPO price of $20 a share, and the stock is up 25% since then. This company is a $1.7 billion market cap lending platform for small businesses. Basically, small businesses apply for a loan via On Deck’s website and its rating system makes a funding decision immediately. It uses credit lines from a number of banks to fund the loans.
The company has made just over $130 million in revenues over the last 12 months, but it has originated more than $1.7 billion in loans since 2007. This company really started taking off during the financial crisis, when bank lending dried up. Individuals and small businesses started turning to non-traditional sources.
Recall the recent success of another company that was born out of the strict bank lending standards, LendingClub (NYSE: LC), which is already up 80% since its IPO last week.
Best IPO Of The Week No. 3: Bellicum Pharmaceuticals (NASDAQ: BLCM)
Bellicum is a $575 million biopharma company. Shares are selling off today, but the stock is still up 25% from its $19 IPO price. Like Juno Therapeutics, its focus is also on cancer treatment. Bellicum is developing new types of immunotherapies for treating different types of hematological cancers and tumors.
Unlike Juno, Bellicum does show some revenues. Over the last 12 months it has brought in $2.6 million in sales, which are all grant revenues.
Best IPO Of The Week No. 4: Rice Midstream Partners (NYSE: RMP)
Rice Midstream was spun off from Rice Energy (NYSE: RICE) on Wednesday. Rice Energy is a natural gas producer in the Marcellus and Utica Shales, and the $570 million market cap Rice Midstream will operate its natural gas pipeline gathering and compression services.
Despite all the turmoil over oil and gas names, Rice Midstream is still up 4.5% from its $16.50 IPO price. But Rice Midstream’s fortunes are tied to Rice Energy. And over the last 12 months, Rice Midstream has brought in just over $3 million revenues, meaning it already trades at a fairly high valuation.
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