Despite a light week for new issue stocks, the IPO market received plenty of attention due to this year's third-largest IPO, (NASDAQ: JD). sold 93.7 million shares, raising $1.8 billion after pricing at $19 per American Depository Share (ADS), above the expected range of $16 to $18. The stock opened higher on May 22 at $21.75 and moved to an intraday high of $22.80 before embarking on a slide near $20.

The company intends to use the $1 to $1.2 billion of the proceeds for building out its current fulfillment infrastructure including land, warehouses, vehicles and shipping and delivery.

Other issues for the week ended May 23 are Superior Drilling Products (NYSE: SEMI).

Related: Troy Gayeski Dishes On SkyBridge Capital's Success

Superior Drilling Products sold 6.8 million shares for $4 per share, below the expected range of $5 to $7. Raising $27 million through ROTH Capital Partners, Superior Drilling opened Friday, May 23, for $4. In an early and volatile session, the stock put in a floor of $4 and by the afternoon moved towards its $4.35 high to settle in at $4.44, a gain of 11 percent for IPO investors.

Proceeds of the offering will be primarily used to cover part of the Hard Rock purchase and to repay various debts. Hard Rock Solutions is being acquired to serve as the tool marketing and distribution division.

Parsley Energy engages its business in acquisition, development, production and exploration of crude oil and natural gas locations, primarily in West Texas. The company sold 50 million shares at $18.50 to raise $925 million.

After opening at $22.30 for trading on Friday, the stock quickly sold off five percent before regaining traction and closing at $22.20. After the first day of trading, IPO investors were up 20 percent. Parsley Energy employed underwriters Credit Suisse, Goldman Sachs, J.P. Morgan and Wells Fargo.

Parsley intends to use $737 million of the proceeds preferred interests and to repay the entirety of its revolver to holders of Parsley Energy, LLC. It will also fund the acquisition of land in the Midland-Basin Core for exploration and development.

Agile Therapeutics focuses on women's health. It is a pharmaceutical company that develops contraceptives using proprietary transdermal technology. Agile raised $55 million by selling 9.2 million shares for $6 each. Shares opened low at $5.50 on Friday and tried to push higher, but the trend couldn't sustain as shares closed at $5.50. RBC Capital and William Blair are the underwriters responsible for the offering.

Twirla, Agile's flagship product, will consume the majority of proceeds as it undergoes phase 3 trials. Any leftover proceeds will be used for Corium validation and development of future products. The company also suggests it may use proceeds for scheduled payments on outstanding debts; the focus, however, is to support Twirla.

SunEdison Semiconductor develops silicon wafers using its own electronic-grade silicon and a manufacturing process that includes strict quality controls. The company sold 7.2 million shares at $13 to raise $93.6 million.

Shares opened Thursday at $15 and moved slightly higher to close the week at $15.55. IPO Investors were fortunate to experience a 20 percent gain in two days. SunEdison chose five firms to underwrite the offering: Citigroup, Deutsche Bank, Goldman Sachs, Macquarie Capital and Wells Fargo.

The company intends to use the proceeds in the following manner:

  • $16.8 million to fully repay intercompany notes.
  • $11.1 million to repay third-party debts relating to the semiconductor materials business.
  • $62.3 million will remain as a cash item on the balance sheet.

Initial public offerings offer investors incredible opportunity to take ownership in a security on the ground floor. Last week's issues rewarded early investors with a gain of 9.9 percent, compared to the S&P 500's 1.3 percent gain.

The IPO scene now takes a break -- at time of publication, there are no scheduled offerings for the week.

Disclosure: At the time of this writing, the author holds no positions in the mentioned companies.

Related Articles
  1. Stock Analysis

    How Much Coca-Cola Spends on Advertising

    Learn about Coca-Cola's ad spending and why the company has decided to spend the amount of money it does. Understand comparable companies and industries.
  2. Investing

    Welcome Back, Volatility

    Volatility is likely to resurface as the Federal Reserve gets closer to adjusting its monetary policy stance, even if that adjustment is a measured affair.
  3. Economics

    What Is The Labor Market Conundrum?

    We are facing a conundrum with investment implications: Why are wages still stagnant, when jobs are being created at the fastest pace since the late 90's?
  4. Investing

    Why Are Consumers In Hesitation?

    Diverging monetary policy globally and a stronger dollar continued to be key drivers of the recent underperformance and last week’s tumble in U.S. stocks.
  5. Economics

    Bulk Shipping Companies Struggle As Markets Soften

    The "soft" dry bulk shipping market that confronts shipping companies is a result of lower demand from China, and an excessive amount of bulk ships.
  6. Stock Analysis

    Sierra Wireless Benefits From These Megatrends

    We take a closer look at how Sierra Wireless' transition from 2G to 3G and 4G technologies, has impacted its business today, and the future expectations.
  7. Stock Analysis

    3 Growth Opportunities For ARM Holdings

    ARM Holdings highlighted several growth opportunities in its most recent roadshow presentation. Here are three of the large opportunities it talked about.
  8. Stock Analysis

    Is Cheniere Energy Still On Track For 2016?

    The energy boom in the U.S. has opened up a huge range of opportunities in the oil and gas industry.
  9. Stock Analysis

    What’s The Key To Costco’s Extraordinary Success?

    Costco has been one of America's most successful companies: It's growing, efficient, profitable and its long-term shareholders have benefited a windfall.
  10. Stock Analysis

    Can American Capital Agency Maintain Its Dividend?

    Dividend investors know that real estate investment trusts with REITs that invest in mortgage-backed securities produce double-digit dividend yields.
  1. Fractal Markets Hypothesis (FMH)

    An alternative investment theory to Efficient Market Hypothesis ...
  2. Core Durable Goods Orders

    New orders for U.S. core durable goods, which are the total durable ...
  3. Investopedia

    One of the best-known sources of financial information on the ...
  4. Market Depth

    The market's ability to sustain relatively large market orders ...
  5. Closing Tick

    The difference between the number of stocks that closed higher ...
  6. Institutional Brokers' Estimate ...

    A system that gathers and compiles the different estimates made ...
  1. What is the long-term outlook of the metals and mining sector?

    An industry agency council was established by the World Economic Forum in 2014 to serve as an advisory board on the future ... Read Full Answer >>
  2. What is the railroads sector?

    The railroads sector is comprised of publicly traded stocks for companies that operate railroad tracks and/or trains. Railroad ... Read Full Answer >>
  3. Who are Amgen Inc.'s (AMGN) main competitors?

    Biotech giant Amgen Inc (AMGN) bills itself as one of the first biotechnology firms. It was founded in 1980 and has grown ... Read Full Answer >>
  4. What's the most expensive stock of all time?

    Back in late August 2012, Apple’s (AAPL) stock price reached nearly $700 per share. The stock has since split but has yet ... Read Full Answer >>

You May Also Like

Trading Center

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!