Medpace Holdings (MEDP) was soaring by nearly 22% Thursday in its initial public offering, bringing more good news to an IPO market looking to break out from a slow period.
Late Wednesday, Medpace priced 7 million shares at 23, the high end of its estimated range, raising $161 million. The stock opened Thursday at 28.15, and in afternoon action was at 27.88.
Medpace is a contract research organization that provides outsourced clinical development services for the biotechnology, pharmaceutical and medical device industries.
The IPO market hit a seven-year low in the first quarter but rebounded in the second quarter. Successful debuts include Twilio (TWLO), Acacia Communications (ACIA), Line (LN), Talend(TLND) and Cotiviti Holdings (COTV).
Twilio popped 92% on its first day of trading June 23. The stock priced at 15 and finished its first day near 29. Twilio stock was up nearly 11%, past 48, during afternoon trading in the stock market today. Twilio, a provider of cloud-based communications software, late Monday reported Q2 revenue of $64.5 million, up 70% from the year-earlier period, topping consensus estimates.
Acacia, a provider of high-speed fiber optic communications gear, came public on May 13 at 23 and popped 35% on its debut trading day. Acacia was up 2.6% Thursday, near 71, as the company was due to report earnings Thursday after the close.
Japan-based Line priced at 32.75 and rose 27% on its first trading day, July 14. The mobile messaging company was up a fraction Thursday, just past 41.40.
Big Data and cloud integration software maker Talend rose 42% on its first day of trading July 29. The stock priced at 18 and is trading near 25, up a fraction.
Though Cotiviti fell 10% on its first trading day May 26, it has since been on an upswing. The provider of payment solutions for the health care industry reported Q2 earnings after the market close Tuesday. Revenue rose 19% to $158.3 million, with earnings per share minus items of 37 cents, up 19% year over year. Cotiviti was up nearly 5%, around 29.
Medpace, in the first half of this year, reported revenue of $205.5 million, up 20% year over year, and net income of $8.4 million, according to its IPO prospectus. It plans to use net proceeds to pay down $138 million in debt.
Q1 marked the slowest quarter for IPOs in seven years. A mere eight, all in the health care field, raised just $700,000 combined. Q2 brought 33 IPOs, raising $5.5 billion. That's still far below average, but it sparked hopes for an IPO rebound.
By: Brian Deagon (Investor's Business Daily).
Photo: Amanda Rossmann (Enquirer).
Review: Emerging Market Formulations & Research Unit, FLAGSHIP RECORDS.
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