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Three companies priced US IPOs last week, while the fourth (and largest) expected deal, Colony American Homes (NYSE:CAHS), was postponed. Two of the priced deals, Textura (NYSE:TXTR) and LightInTheBox (NYSE:LITB), gained more than 30%, but the third, RCS Capital (NYSE:RCAP), ended the week 3% below its offer price. Two biotechs launched deals, and eight companies, half of which plan to raise more than $300 million, made initial IPO filings.

IPO pricings (week of June 3, 2013)
Company (Ticker) Business Deal Size ($mm) Price vs. Midpoint Return
LightInTheBox (LITB) Chinese online retailer $79 0% 32%
RCS Capital (RCAP) Broker-dealer for REITs $50 0% -3%
Textura (TXTR) Construction project software $75 7% 39%

LightInTheBox is first Chinese company to list in the US since YY

LightInTheBox, which sells China-made products to consumers in Europe and the US, was the first IPO from a Chinese company in 2013, despite the tremendous success of the two US IPOs from China in 2012, Vipshop (NYSE:VIPS) and YY (NASDAQ:YY). Vipshop, another e-commerce company, is the best performing IPO since November 2011, having quadrupled in price; YY, a social platform, is up 174%. Textura had the latest strong debut from a software company, rising 39% on its first day of trading on Friday. It has sold to 41 of the top 100 contractors in North America, and its sales are growing at 50%+. Colony American Homes was the first company since mid-April to postpone an IPO.

IPOs setting terms (week of June 3, 2013)
Company (Ticker) Business Deal Size ($mm) LTM Sales ($mm)
bluebird bio (NASDAQ:BLUE) Early-stage biotech $75 $1
China Commercial Credit (NASDAQ:CCCR) Microcredit in China $18 $12
PTC Therapeutics (NASDAQ:PTCT) Late-stage biotech $100 $29

With biotechs attracting big returns, two more launch deals

Following Epizyme’s 53% first-day gain in the prior week (it is now up 73%), bluebird bio and PTC Therapeutics, both development-stage biotechs, set terms. PTC Therapeutics first filed for an IPO in 2006 but withdrew in 2007. It has a drug candidate for muscular dystrophy and cystic fibrosis in Phase 3 trials. Backed by Third Rock Ventures, bluebird bio is developing therapies for genetic and orphan diseases.

New IPO filers (week of June 3, 2013)
Company (Ticker) Business Deal Size ($mm) LTM Sales ($mm)
American Homes 4 Rent (NYSE:AMH) Residential REIT $1,250 $11
Athlon Energy (NYSE:ATHL) Oil and gas E&P $345 $179
Cellular Dynamics International (NASDAQ:ICEL) Cell manufacturing $57 $8
China Commercial Credit Microcredit in China $18 $12
Volaris Aviation (NYSE:VLRS) Mexican airline $100 $1,011
Graña y Montero (NYSE:GRAM) Engineering/construction $460 $2,086
NRG Yield (NYSE:NYLD) Energy assets $400 $184
Tecogen (NASDAQ:TGEN) Utility systems $25 $16

Three foreign deals among eight added to the pipeline

For the second consecutive week, two foreign companies with more than $1 billion in sales filed for U.S. IPOs. Graña y Montero is Peru’s largest engineering and construction company, and Volaris Aviation is a low-cost airline based in Mexico. The day before Colony American Homes postponed its deal, another REIT that leases single-family properties, American Homes 4 Rent, filed for a $1.3 billion IPO. Backed by Apollo, Athlon Energy is the second E&P to file this year, after Jones Energy (NYSE:JONE) filed in the prior week.

IPO market snapshot

The 77 IPOs in 2013 have raised $17.2 billion and produced an average return of 19%. There have been 55 IPOs in the past 90 days, with total proceeds of $11.3 billion and an average return of 19%. The active IPO pipeline includes 111 companies looking to raise $32.6 billion.

Source: U.S. IPO Recap: Textura And LightInTheBox Gain Over 30%, 8 Companies File