All Sectors on Deck

People love their pets. They want the best for their pets, and so they spend money on their pets. Therefore, investors are spending money on companies that make things for pets. This is good news for the sixth largest IPO of the year, Blue Buffalo Pet Products, which was one of three IPOs to debut last week, spanning several sectors.

The fifth IPO from the Consumer Goods sector so far this year, and the second-largest CG offering in terms of proceeds (behind Fitbit), Blue Buffalo priced two dollars above its filing range, and generated $778.1M in proceeds. That’s a 55.1% increase over its expected proceeds ($502.4). Somebody deserves a treat and a belly rub.

Also debuting last week were Neos Therapeutics, the year’s 44th entry in the Healthcare space, and Live Oak Bancshares, the 13th Financials IPO. All three performed well on their first days, with Neos and Blue Buffalo soaring over 30%. Thus far in 2015, Consumer Services boasts the largest average offer/1-day price jump, with all nine of its debuts rising an average of 42%, closely followed by Consumer Goods, which five debuts have combined for a mean of 34.9%.

Meanwhile, in the previously discussed Industrials sector, Poseidon Containers Holdings ($230.7M) is expected to generate less than the sector’s average proceeds in 2015 when it hits this week, but will make the seventh debut from the space, and the 16th since January of last year. Also due this week is TerraForm Global, a Utilities IPO that will be the year’s third largest debut at $1.4B, which is roughly the size of all five of last year’s Utilities debuts.

If all of this week’s anticipated debuts come to pass, that will make it the fourth week of the year with seven IPOs hitting the market. It’s starting to look like the late second quarter surge is holding firm, with, as we hoped, multiple sectors pitching in.