Two IPOs hit the market today – with two very different first-day performances.
Model N (NYSE: MODN), a provider of revenue management software to the life science and technology sectors, was up 28% in its debut despite pricing above its expected range. The stock went public at $15.50 a share, ahead of its predicted $12.50-$14.50 range. But that didn’t stop it from rising all the way to $19.84 on Wednesday.
Tetraphase Pharmaceutical’s (NASDAQ: TTPH) IPO wasn’t quite as effective.
A developer of antibiotics that treat serious abdominal and urinary tract infections, Tetraphase shares priced at $7 a share – well below the $10 to $12 range listed in the company’s original IPO filing. The stock didn’t budge from there, finishing at exactly $7 after rising as high as $7.50.
Six more companies are scheduled to go public in the coming days, including another pharmaceutical company called Enanta. Tetraphase’s first-day struggles likely have Enanta officials a bit more apprehensive about their company’s IPO.
On the flip side, Marin Software is surely encouraged by Model N’s smashing debut. That should embolden the San Francisco-based cloud-computing company ahead of its IPO, which could come by week’s end.
Model N and Tetraphase were just the fourth and fifth companies to go public this month.