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Seven deals began trading on Thursday, marking the most IPOs to debut in a day since December 15, 2004. Thursday's group included single-family residential REIT American Residential Properties (NYSE:ARPI), packet-optical networking vendor Cyan (NYSE:CYNI), frac sand LP Emerge Energy Services (NYSE:EMES), mortgage producer and servicer PennyMac Financial Services (NYSE:PFSI), the world's largest contract research organization Quintiles Transnational (NYSE:Q), biotech Receptos (NASDAQ:RCPT), and branchless bank TriState Capital (NASDAQ:TSC).

TriState Capital was the best performing deal, finishing the day up 9.5%. Receptos (traded flat), American Residential Properties (flat) and Emerge Energy Services (-2.7%) all priced below the midpoint and failed to gain traction throughout the day.

Quintiles and Receptos price upsized deals at opposite ends of the range

Quintiles, the world’s largest CRO and provider of commercial outsourcing services to biopharmas, raised $947 million by offering 23.7 million shares (45% insider) at $40, the top of the $36 to $40 range. The company had originally filed to sell 19.7 million shares (30% insider), resulting in a deal size 26% larger than anticipated. However, primary proceeds remained constant at $525 million, with the increased pricing offset by a lower number of primary shares offered (13.1 million vs. 13.8 million). At the $40 offer price, Quintiles commands a fully diluted market cap of $5.4 billion and an enterprise value of $6.8 billion. Quintiles finished its first day of trading at $42.11, up 5.3% from its offer price.

Receptos, an early-stage biotech developing treatments for relapsing multiple sclerosis and inflammatory bowel disease, raised $73 million on Wednesday by offering 5.2 million shares (up from 4.7 million) at $14, the low end of the $14 to $16 range. Insiders were expected to buy $17 million of the IPO, reducing the effective float to $56 million. Receptos commands a market cap of $246 million, with $97 million in post-IPO cash. Receptos closed the day at its IPO price of $14.00.

American Residential and Emerge Energy price below the midpoint, trade down

American Residential Properties, an internally managed REIT focused on leasing single-family residential properties, raised $288 million by offering 13.7 million units at $21, at the low end of the $21 to $23 range. As of March 31, 2013, the REIT owned a portfolio of 2,531 properties across 10 states (41% in Arizona) with an 86% occupancy rate. American Residential rallied to finish the day at its IPO price of $21.00, after spending most of the day below its offer price.

Emerge Energy Services LP, formed by private equity firm Insight Equity to produce frac sand and process transmix fuel, raised $128 million by offering 7.5 million units at $17, below the $19 to $21 range. Emerge Energy is a play on the increasing popularity of hydraulic fracturing, which is expected to nearly double frac sand demand by 2021. Emerge Energy closed its first day of trading at $16.55, down 2.7% from its IPO price.

Cyan, TriState, and PennyMac price at the midpoint, trade up slightly

Cyan, which provides a software-driven transport/switching platform for network operators, raised $88 million by offering 8 million shares at $11, within its $10 to $12 range. At the $11 offer price, the company commands a fully diluted market cap of $586 million and an enterprise value of $506 million. Cyan closed its first day of trading at $11.14, up 1.3% from its IPO price.

TriState Capital, a branchless bank serving middle market businesses in the northeast, raised $66 million on Wednesday by offering 5.7 million shares (4% insider) at $11.50, the midpoint of the $10.50 to $12.50 range. At the $11.50 offer price, TriState commands a fully diluted market cap of $323 million. TriState Capital, the best performing deal on the day, closed trading at $12.59, 9.5% above its offer price.

PennyMac Financial Services, which originates, acquires and services residential mortgage loans, priced its 11.1 million share offering at $18, the midpoint of the $17 to $19 range. At the offer price, the company commands a market cap of $1.4 billion and an enterprise value of $1.5 billion. PennyMac closed at $19.10, 6.1% above its IPO price.

Busy day puts May on track for strong month

In addition to the seven IPOs that began trading on Thursday, this week also saw the debut of REIT Armada Hoffler Properties (NYSE:AHH), bringing the total to eight IPOs so far this week. This is the most pricings in a week since the week of October 8, 2012, when nine IPOs hit the market, including Workday (NYSE:WDAY) (up 127.7%), Realogy (NYSE:RLGY) (up 90.2%), and Shutterstock (NYSE:SSTK) (up 166.8%). With several other deals on the calendar, this week has a chance to surge into double digit pricings, potentially making it the most active week since 2007. Less than two weeks into May, there has already been 13 IPOs, which is tied with April for the most in a month so far this year. At this pace, May will not only become the strongest month for pricings this year, but also could threaten to eclipse the 20 IPO barrier, which has only happened four times since 2008.

Thursday's IPOs

Company

Business Description

Deal Size First Day Pop
American Residential Internally managed REIT focused on leasing single-family residential properties. $288 0.0%
Cyan Provides a software-driven transport/switching platform for network operators. $88 1.3%
Emerge Energy Services, LP Formed by Insight Equity to produce frac sand and process transmix fuel. $128 -2.7%
PennyMac Financial Originates, acquires and services residential mortgage loans. $200 6.1%
Quintiles Transnational World’s largest CRO and provider of commercial outsourcing services to biopharmas. $947 5.3%
Receptos Early-stage biotech developing treatments for relapsing multiple sclerosis and inflammatory bowel disease. $73 0.0%
TriState Capital Branchless bank serving middle market businesses in the northeast. $66 9.5%

Source: 7 IPOs Debut On Thursday, Most In A Single Day Since 2004