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Despite no new pricings or filings, the U.S. IPO market remained active last week as six companies launched deals. Most of the $1.3 billion in proceeds added to the calendar came from biopharmaceutical service provider Quintiles (Q), which is seeking $750 million. Aside from very fast growing tech company Cyan (CYNI), the remaining new deals were smaller, niche offerings, including two REITs, a development-stage biotech and a regional bank. There are now a total of 14 deals on the IPO calendar.

Drug-trial operator Quintiles sets terms for $750 million IPO
Quintiles Transnational, the largest provider of clinical trial services to pharmaceutical companies, announced that it plans to raise $750 million by offering 19.7 million shares (30% insider) at a price range of $36 to $40. The $750 deal size would make Quintiles the third largest IPO of 2013, behind Zoetis (ZTS), which raised $2.2 billion, and ING US (VOYA), which is expected to raise $1.4 billion next week.

Networking software and hardware provider Cyan sets terms for $88 million IPO
Cyan, which provides next generation packet-optical transport systems for software-defined networks (SDNs), announced that it plans to raise $88 million by offering 8 million shares at a price range of $10 to $12. Primary venture backers include Norwest Venture Partners (25% post-IPO stake), Azure Capital (14%), Tenaya Capital (7%), Focus Ventures (6%) and Meritech Capital Partners (6%).

REITs Ellington Residential and Armada Hoffler set terms
Ellington Residential Mortgage REIT (EARN), a mortgage REIT that invests in Agency RMBS and non-Agency RMBS, announced that it plans to raise $129 million by offering 6.5 million shares at a price of $20. It follows three mortgage REITs that went public earlier this year, none of which has traded well; Orchid Island (ORC) and ZAIS Financial (ZFC) have fallen 12% and 3%, respectively, while Five Oaks (OAKS) is up less than 1%. Armada Hoffler Properties, a REIT that develops, builds and owns office, retail and multifamily properties, announced that it plans to raise $175 million by offering 14.6 million shares at a price range of $11 to $13.

Biotech Receptos sets terms for $71 million IPO
Receptos (RCPT), a biotech with a Phase 3 drug candidate for relapsing multiple sclerosis, announced that it plans to raise $71 million by offering 4.7 million shares at a price range of $14 to $16. April's two biotech IPOs have seen very different results: Omthera (OMTH), which has developed a prescription fish oil capsule that reduces triglyceride level, is down 17% since its offering, the third worst IPO return of 2013. Chimerix (CMRX), which is developing a potent antiviral drug for use in stem cell transplants, is up 35% since its IPO, the sixth best return of 2013.

Northeastern bank TriState Capital sets terms for $66 million IPO
TriState Capital (TSC), a bank serving middle market businesses in the northeast, announced that it plans to raise $66 million by offering 5.7 million shares (4% insider) at a price range of $10.50 to $12.50. TriState Capital follows in the footsteps of two other regional banks that have gone public this year. Texas-based Independent Bank Group (IBTX) is up 9% since its debut in early April and New Jersey-based ConnectOne Bancorp (CNOB) is up 3% since its February IPO. First NBC Bank (NBCB.RC), which serves markets in the New Orleans area, filed for its IPO on April 8.

US IPO performance update
Although there were no new IPOs last week, average IPO returns fell slightly. For IPOs in the last 90 days, the average total return is 13% (down from 17% two weeks ago), and the average aftermarket return is 0.5% (down from 4.5%).

Source: U.S. IPO Recap: Quintiles, 5 Others Set Terms