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Epizyme (NASDAQ:EPZM) and Kamada (NASDAQ:KMDA), the only IPOs to be completed in a relatively quiet week, pushed the IPO market into new post-recession territory on Friday. The two deals were the 29th and 30th of the month, making May the first month with 30 IPO pricings since May 2007. The total smashed the previous post-downturn high of 20, and was just one shy of tying the record since 2000. Last week was also the ninth straight to have at least four companies set terms, suggesting that the market could avoid the sharp June slowdowns seen in the last two years. Two of the newly launched deals, Votorantim Cimentos (VEBM) and Coty (COTY), are seeking to raise at least $1 billion.

IPO Pricings (week of May 27, 2013)
Company (Ticker)BusinessDeal Size ($mm)Price vs. MidpointReturn
Epizyme (EPZM)Early-stage biotech$777%53%
Kamada (KMDA)Protein therapeutics$52n/a9%
Epizyme has best first day return for a biotech in more than nine years

Epizyme, a biotech investigating the role of gene expression in various cancers, jumped 53% on Friday. It was the biggest first-day gain for a biotech since Eyetech Pharmaceuticals shot up 54% in 2004 as well as the third-highest jump for any IPO in 2013. The health care industry has been the second-most active for IPOs in 2013, accounting for 23% of deals and producing a healthy 20% average return. Four health care IPOs, Stemline (NASDAQ:STML), Omthera (NASDAQ:OMTH), Chimerix (NASDAQ:CMRX) and Epizyme, are up more than 50% from their offer prices, and more than a third of the health care deals have gained 15% or more on their first days.

Epizyme garnered attention for its major pharmaceutical partners, Celgene (NASDAQ:CELG), Eisai (OTC:ESALF) and GlaxoSmithKline (NYSE:GSK), which have paid $144 million for licensing rights and have promised up to $991 million in future milestone payments. The company began Phase 1 trials in late 2012, and one of the first clinical patients quickly showed signs of recovery from acute leukemia, a fast progressing and difficult-to-treat cancer. The week's only other IPO, Kamada, ended up 9% after pricing at a discount to its most recent closing price on the Tel Aviv Stock Exchange.

IPOs setting terms (week of May 27, 2013)
Company (Ticker)BusinessDeal Size ($mm)LTM Sales ($mm)
Colony American Homes (CAHS)Single-family home REIT$245$20
Coty (COTY)Beauty products$1,000$4,614
Gigamon (GIMO)Data traffic management$128$106
Heat Biologics (HTBX)Early-stage biotech$18n/a
Textura (TXTR)Project management software$56$16
Votorantim Cimentos (VEBM)Brazilian cement producer$3,410$4,896

Brazilian cement producer launches year's largest IPO

Votorantim Cimentos (VEBM), Brazil's largest producer of cement, set terms for a $3.4 billion IPO, which could surpass Zoetis (NYSE:ZTS) ($2.2 billion) as the year's largest. Coty (COTY), a global leader in fragrances and color cosmetics, also launched a $1 billion deal. Colony American Homes (CAHS) became the latest single-family REIT to attempt to go public. The last, American Residential Properties (ARPI), is down 6% from its offer price.

New IPO filers (week of May 27, 2013)
Company (Ticker)BusinessDeal Size ($mm)LTM Sales ($mm)
Azul (AZUL.RC)Brazilian airline$500$1,667
Grupo Aval Acciones (AVAL)Colombian banking$100$4,898
Jones Energy (JONE)Oil and gas$250$162

Two South American companies added to the pipeline

The week's largest filer was also from Brazil. Azul (AZUL.RC), a Brazilian airline founded by the creator of JetBlue (NASDAQ:JBLU), filed for a $500 million IPO. Another South American company, also with more than $1 billion in sales, Grupo Aval Acciones (NYSE:AVAL) filed with a placeholder value of $100 million. The last new filer was Jones Energy (NYSE:JONE), an oil and gas company operating in Texas and Oklahoma.

Year-to-date results

The 74 IPOs in 2013 have raised $17.0 billion and produced an average return of 19%. There have been 54 IPOs in the past 90 days, with total proceeds of $11.5 billion and an average return of 18%. The IPO pipeline includes 107 companies looking to raise $30.3 billion.

Source: U.S. IPO Recap: May Ends With 30 Pricings, 2 Billion Dollar Deals Set For June