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Out of the three companies that were slated to go public this week, one increased its deal size by 20% by selling its upsized offering above the initially proposed range, another was forced to cut its deal size by 25%, while the third postponed its IPO due to market conditions.

Metals USA (MUSA), the ninth largest metal distributor in the US, was the leader of the pack, raising $240 million by offering 11.4 million shares at $21, above its proposed $18-$20 range. The company had originally expected to offer 10.5 million shares. Despite the boost in IPO proceeds, however, Metals USA saw its stock drop in morning trading and was down nearly -9% by the market close.

Tengion (OTCPK:TNGN) also boosted the number of its shares in its offering from 4.4 million to 6 million, but priced well below its range of $8-$10 at $5 per share, resulting in a 25% cut in deal size. The lower-than-expected amount in IPO proceeds may present funding obstacles for the early stage biotech, which is not expected to generate product revenue until 2015 at the earliest. Tengion is developing technology that uses a patient's own cells, also called autologous cells, to create replacement neo-organs and treat urologic and renal diseases. Tengion is the fourth biotech to go public this year, after Ironwood (IRWD) and AVEO Pharmaceuticals (AVEO), up 27% and 3%, respectively, and Anthera (ANTH), which has remained flat in aftermarket trading.

Nexsan (NXSN), which provides disk-based storage systems for mid-sized businesses and enterprises, postponed its IPO on Friday, two days after close peer Compellent (CML) released disappointing fourth quarter results. The company had planned to raise $55 million by offering 5 million shares at a range of $10-$12. Nexsan's postponement shows that IPO investors continue to be selective despite a strengthening IPO market that has been particularly positive in the tech space over the past few weeks (two of March's four tech deals are currently trading up 23%; the other two are up 5%).

More encouraging than last week's IPO performance was the number of companies that submitted IPO filings. Two companies (semiconductor company Aeroflex (ARX) and medical device company Kips Bay Medical (KIPS)) filed S-1s, while six others announced pricing terms for their upcoming IPOs. The six companies cover the industry spectrum, from speech software provider Dynavox (OTCPK:DVOX) and seismic data interpreter Global Geophysical Services (GGS) to ophthalmology biotech Alimera (ALIM) and branded hotel REIT Chatham Lodging (CLDT). Three of the six already have scheduled pricing dates and are listed on our IPO calendar for the month of April.

We continue to see a large number of venture-backed deals in the IPO pipeline, as discussed in our 1st Quarter 2010 IPO Review. However, we could see a resurgence in private equity-backed deals, with leading hospital chain HCA, Dutch semiconductor company NXP and retailer Toys "R" Us (all controlled by PE-giants KKR and Bain Capital) rumored to be amidst preparations for IPOs of over $1 billion. The global IPO market is similarly gaining steam, with insurance companies PZU and Samsung Life expected to float $1.9 billion on the Warsaw Exchange and $4.7 billion on the Korea Exchange, respectively. Both are scheduled to price in late April.

Source: Mixed Results for This Week's IPOs; Uptick in Filings