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After a slow start to March, in which only three deals priced, the third week of the month saw seven companies debut. The group includes two software companies, Model N (MODN) and Marin Software (MRIN); two biotechs, Enanta Pharmaceuticals (ENTA) and Tetraphase Pharmaceuticals (TTPH); two REITs, nursing REIT Aviv (AVIV) and mortgage REIT Five Oaks (OAKS); and a conferencing and call center provider, West Corp. (WSTC). Diagnostics company Cancer Genetics (CGIX) had also been on the calendar, but instead cut its deal size and now plans to list on the OTC in the coming weeks.

In addition to the busy pricing week, six new companies were added to the U.S. IPO Pipeline. Among them are Safeway's prepaid products business Blackhawk (HAWK), Madison Dearborn-backed CDW (CDW), Warbug Pincus-backed Bausch & Lomb (BL.RC), REIT American Residential Properties (OTC:ANRPZ), and two biotechs -- GW Pharmaceuticals (GWPH) and Aratana Therapeutics (PETX).

First Two Software IPOs of 2013 Perform Well

Model N, which provides revenue management software to the life science and technology sectors, raised $104 million by offering 6.7 million shares at $15.50, above the initial range of the $12.50 to $14.50. It gained 29% on its first day of trading, but retreated in the aftermarket, finishing the week up 19%.

Marin Software, which provides a cloud-based digital ad management platform, raised $105 million in an upsized IPO by offering 7.5 million shares at $14, above the $11 to $13 range. The San Francisco, Calif.-based company has grown rapidly (65% in 2012 vs. 31% peer average) as advertisers increasingly turn to digital channels. Marin traded up 16% in its debut on Friday.

Both Biotechs Price Down, but Enanta Is Week's Top Performer

Enanta Pharmaceuticals, a biotech focused on developing small molecule drugs to use against hepatitis C, raised $56 million by offering 4.0 million shares at $14, the low end of its $14 to $16 range. Enanta's lead candidate, ABT-450, produced excellent results in Phase II trials, with 85%+ cure rates and only minor side effects. The drug has been licensed to Abbott-spinoff AbbVie, which is offering milestone payments of up to $195 million and will pay royalties in the mid-teens. Enanta had the best performance among last week's IPOs, with a total return of 20%.

Tetraphase Pharmaceuticals, an early-stage biotech developing antibiotics to treat serious abdominal and urinary tract infections, raised $75 million by offering 10.7 million shares at $7, below the revised $8 to $10 range. The company had originally filed to offer 6.8 million shares at a range of $10 to $12 ($75 million deal size). Existing venture backers Flagship, CMEA, Skyline, Beacon, Mediphase and Excel Medical purchased a third of the IPO. Tetraphase ended the week trading at its offer price.

Nursing REIT Gains, While Mortgage REIT Struggles

Aviv REIT, which specializes in post-acute and long-term skilled nursing facilities, raised $264 million by offering 13.2 million shares at $20, the high end of the $18 to $20 range. Aviv's proposed yield of 7.2% in 2013 at the offer price proved attractive to investors, who pushed shares up 14% to just under $23.

Five Oaks, a mortgage REIT focused on Agency and non-Agency RMBS, priced its 4 million share IPO at $15, as expected. The company concurrently sold 1.7 million shares in a private placement to global insurer XL Group (XL), which was already an investor. On Friday, it became the eighth consecutive mortgage REIT IPOs to fall on the first day of trading, dropping 3%.

Week's Largest IPO, West Corp., Falls 6%

West Corp., a leading conferencing and call center provider LBO'd by Thomas H. Lee and Quadrangle Group, raised $426 million on Thursday by offering 21.3 million shares at $20, below its $22 to $25 range. On Friday, it fell 6% as investors appeared to be put more weight on West's limited growth prospects (2% organic growth in 2012) than on its strong free cash flow generation and nearly 5% dividend.

Biotechs and Texas Community Bank Set Terms

Harvard Apparatus Regenerative Technology (HART), a Harvard Bioscience carve-out that focuses on regenerative medicine and has developed a synthetic trachea, filed terms for a $19 million IPO. The Holliston, Mass.-based company plans to offer 1.7 million shares at a price range of $10 to $12. The company would command a market value of $110 million. Harvard Bioscience will maintain an 83% stake after the offering. In addition, Israeli ADHD drug developer Alcobra (ADHD) set terms for a $15 million IPO by offering 1.4 million shares at a range of $10 to $12. The company would command a market value of $102 million.

Independent Bank Group (IBTX), a Texas-based bank with 30 offices serving the Dallas-Fort Worth metropolitan area, plans to raise $80 million by offering 3.2 million shares at a price range of $24 to $26. At the midpoint, the company would command a fully diluted market value of $292 million.

Safeway's Gift Card Unit Blackhawk Network Files for IPO

Blackhawk Network Holdings, which provides prepaid products for consumers and businesses, filed with a proposed deal size of $200 million. Safeway is the second largest grocery store operator in the United States. Revenue has grown at a 29% CAGR since 2010 after generating $959 million in revenue for the 2012 fiscal year. It initially filed confidentially on Nov. 16, 2012.

Private Equity-Backed Deals File for Large Offerings

Madison Dearborn-backed CDW, a Fortune 500 technology products retailer serving more than 250,000 business, government and education customers, proposed a deal size of $500 million in its initial filing. Madison Dearborn, along with Providence Equity Partners, took CDW private in a 2007 LBO for $7.3 billion. The company generated $10.1 billion in revenue in 2012.

Warburg Pincus-backed Bausch & Lomb, which is a leading supplier of contact lenses and lens care products, filed with a placeholder deal size of $100 million. The actual deal size is expected to exceed $1 billion, and potentially as much as $1.5 billion. The company was acquired by Warburg Pincus for $3.7 billion in 2007. Bausch & Lomb generated $3.0 billion in revenue in 2012.

Biotechs and a Residential Property REIT Round Out New Filers

Aratana Therapeutics, which is focused on the development and commercialization of prescription medication for pets, proposed a deal size of $58 million in its initial filing. The company was founded in 2010 and it is yet to generate any revenue. Its primary backers include MPM BioVentures (25% pre-IPO stake) and Avalon Ventures (24%).

GW Pharmaceuticals, which develops and commercializes cannabinoid-based therapeutics, filed to raise up to $50 million in its IPO. The U.K.-based company initially filed confidentially on Dec. 14, 2012, and booked $53 million in revenue in 2012.

American Residential Properties, a REIT focused on single-family residential properties, filed with a proposed deal size of $300 million. The company owns 1,775 homes as of Dec. 31, 2012, and has rights to purchase an additional 1,056.

U.S. IPO Market Performance Update

Despite the large wave of deals, there were no standout winners or losers. Year-to-date performance is exactly flat with two weeks ago. The average total return is 17% and the average aftermarket return is 4%. There have been 30 U.S. IPOs in 2013, with total proceeds of $7.0 billion.

Source: U.S. IPO Weekly Recap: 7 Deals Price, 6 New Filers