Top Nav

Model N, Tetraphase IPOs Debut

Ian Wyatt

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.

Strike Price Offer

The Strike Price is your leading resource for insight into the world of options trading. Chief options analyst Andy Crowder will guide you through the best options strategies—telling you exactly where he's putting his money, and how you can make safe, reliable gains from some simple options trades. Your FREE subscription also includes Andy’s report "The One Vital Rule for Every Options Trade"—which reveals the #1 rule to achieve a high win-rate in every options trade.
You've successfully subscribed, click the link in your email to confirm your subscription.
There was an error, and you have not been subscribed, please try again.