The IPO market in June continued to produce a flow of new offerings at a torrid pace compared to recent years. The month ended with 19 IPOs—more than six times the paltry total of three in June 2012, when the IPO market was taking an early summer hiatus—and the highest June figure since the 19 in June 2005. The last week of June alone produced 10 offerings—the largest weekly total since the 11 IPOs in the first week of November 2007.

Gross proceeds of $3.64 billion in June failed to match the prior month's total of $4.56 billion but still represented the highest June figure since the $6.22 billion in June 2007. June's gross proceeds were buoyed by Coty's $1.0 billion IPO and HD Supply's $957 million IPO.

In total, the 70 IPOs in the first half of 2013 were six IPOs (9%) above the 64 in the first half of 2012 but 26% below the 95 in the first half of 2007—the recent high point of the IPO market, when the year ended with 193 IPOs. Gross proceeds for the first half of 2013 were $16.86 billion.

Year-to-date, 74% of all IPOs have been by emerging growth companies under the JOBS Act.

The average 2013 IPO has enjoyed a 17% first-day gain from its offering price—just eclipsing the 16% average first-day gain for full-year 2012. So far in 2013, 15 companies—21% of the total—have produced a first-day gain of at least 30%. An equal percentage of the year's IPOs have been "broken" (IPOs whose stock closes below the offering price on their opening day), compared to 20% in all of 2012 but still the second lowest level since 2007.

At June month-end, 42% of the year's IPOs were trading 25% or more above their offering price, including 23% up more than 50% from their offering price.

Through the first six months of 2013, the median deal size of $98.7 million is 5% higher than the $94.3 million in 2012. The median deal size of VC-backed companies is $78.8 million—the lowest level since the $72.0 million in 2007—while median deal size for non-VC backed companies is $230.0 million—58% higher than the prior ten-year average of $146.0 million. The median deal size for emerging growth companies, at $78.4 million, is less than a fifth of the $436.3 million median deal size for other companies.

The median annual revenue of IPO companies has decreased 33% from $133.6 million in 2012 to $90.1 million in 2013 to date—the lowest level since the $74.5 million in 2007. Emerging growth companies had median annual revenue of $53.5 million compared to $2.54 billion for other companies.

The percentage of profitable companies going public declined from 55% in 2012 to 44% in 2013 to date—the lowest level since the 26% in both 1999 and 2000. Only 30% of this year's life sciences and technology related IPO companies were profitable.

June IPO activity consisted of offerings by the following companies listed in the order they came to market:

  • RCS Capital, which is engaged in wholesale broker-dealer, investment banking and capital markets business activities, priced a downsized IPO at the midpoint of the range, and ended its first day of trading down 3%.
  • LightInTheBox, a Chinese global online retail company, priced at the midpoint of the range and appreciated 22% in first-day trading.
  • Textura, which provides on-demand project management software for the commercial construction industry, priced a twice upsized IPO at the high end of the range and ended its first trading day 39% above its offering price.
  • Data traffic management software maker Gigamon priced at the middle of the range and enjoyed a first-day gain of 50%.
  • Coty, a global fragrance and cosmetics conglomerate—the largest US-listed IPO in history for a consumer-products company, according to Dealogic—priced in the middle of the range and declined 1% on its first day of trading.
  • bluebird bio, a clinical-stage biotechnology company developing gene therapies for severe genetic and orphan diseases, priced an IPO upsized by just under 20% above the range and ended its first day of trading up 58%—the best first-day gain for any biotech company IPO since mid-2000.
  • PTC Therapeutics, a biopharmaceutical company focused on the discovery and development of orally administered, proprietary small-molecule drugs that target post transcriptional control processes, priced an IPO upsized by 21% within the range and saw a first-day gain of 10%.
  • Truett-Hurst, a wine sales, marketing and production company, priced an IPO through W.R. Hambrecht's OpenIPO auction-based process, and ended its first day of trading down 5%.
  • In-flight wireless connectivity provider Gogo priced at the top end of the range and ended its first day of trading down 6%.
  • Esperion Therapeutics, a biopharmaceutical company focused on the treatment for elevated levels of low-density lipoprotein cholesterol, priced an upsized IPO at the middle of the range and saw a first-day gain of 4%.
  • Luxoft, a global provider of software development services and IT solutions, priced at the midpoint of the range and appreciated 20% in first day trading.
  • NanoString Technologies, which develops, manufactures and sells diagnostic systems for the analysis of genomic information, priced below the range and declined 19% on its first day of trading.
  • Aratana Therapeutics, a development-stage biopharmaceutical company focused on pet therapeutics, priced a twice upsized IPO in line with a downwardly revised price and ended its first day of trading up 38%.
  • Private equity–backed CDW, a Fortune 500 provider of integrated information technology solutions, priced a downsized IPO at the low end of a downwardly revised range and increased 8% on its first day of trading.
  • HD Supply Holdings, one of the largest industrial and construction supplies distributors in North America, priced at the low end of the reduced range and ended its first day of trading up 4%.
  • Silvercrest Asset Management, a wealth management firm, priced below the range and saw a first-day gain of 8%.
  • Tremor Video, a provider of technology-driven video advertising solutions, continued the string of companies pricing below their original range and ended its first day of trading down 15%.
  • Noodles, a fast-casual restaurant operator, priced above an upwardly revised range and enjoyed a first-day gain of 104%.
  • The Netherlands-based Prosensa Holding, a biotech company engaged in the discovery and development of RNA-modulating therapeutics for the treatment of genetic disorders, priced an IPO upsized by 20% at the high end of the range and ended its first day of trading 48% above its offering price.

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