Phreesia And Medallia Launch Rocketship IPOs As The Exit Party Continues

Morning Markets (Bonus): Two wins and one miss. Not bad for three companies which sport $0 in profits between them.

As promised, there were three IPOs this week that we had eyes on. Now that we’re on the other side of the working period, it’s time to take score. Out of the three, one IPO turned out to be a disappointment while the other two were big wins. Let’s quickly recap here at the end of the week.

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First, DouYu, and then our two winners, Phreesia and Medallia.

DouYu: Down

First, DouYu priced its IPO at the low-end of its range, charging just $11.50 per share for its stock. The firm’s range extended to $14 per share. However, we as noted, DouYu was already cash-rich and now sits atop an even larger stash of dollars. (More on the company’s revenue, cash flow, and losses here.)

But since that initial disappointment, DouYu has extended its losing streak. As of the time of writing this Friday, DouYu shares are worth just $10.45, off just over 4.5 percent in a single day. DouYu shares are therefore down more than $1 per share.

For the streaming media world, and perhaps esports (more on the category here), the result wasn’t great. However, don’t fret about a potential ding to the IPO market itself. As we can see from the week’s other two offerings, things are still piping hot.

Phreesia: Up

What can you not pronounce that also priced above its range? Phreesia, naturally. After targeting a price range of $15 to $17 per share, Phreesia priced its IPO at $18. That’s a healthy result, meaning that the firm managed to raise a bit more cash than it expected ($167.4 million, in fact).

Phreesia raised $92.6 million in known capital while private, according to Crunchbase data. The company works in the healthtech space, specializing in patient care through mobile hardware.

But for the public markets, a mere $1 more per share was hardly enough. Instead, Phreesia’s shares surged in early trading, and despite some declines, today are worth $24.36 at the time of writing. That’s more than 50 percent above its $18 per-share IPO price. Even more, the firm’s all-time low is $24.00.

Expect to see some gripes that this IPO was underpriced; surely the firm could have raised more capital if it had priced higher. If the firm’s new trading range is an accurate price or more of an optimistic price, is yet to be seen (trading will tell) but for now the IPO looks embarrassingly cheap.

Medallia: Up

If Phreesia’s pricing was bullish, coming in $1 above range, Medallia’s was downright giddy. After posting a range of $16 to $18, the company priced at $21 per share. That worked out to around $325.5 million in new capital for the firm. (For notes on its IPO filing, head here.)

Medallia raised $325 million while private, according to Crunchbase data. It works in the customer experience space, which while we think sounds cool, we’re not entirely clear what it means. (You try to figure it out.)

But if Medallia might have worried that pricing so far above range was potentially risky, the markets didn’t pick up on the fear. Shares of Medallia opened on the public market at $34 per share and currently trades for $36.28. At that price, Medallia’s worth is up just under 73 percent.

That’s one hell of a first day. And, given how good of a day it is, expect more of the same IPO pricing complaints.

So that’s two wins and one miss. Not bad for three companies which sport $0 in profits between them.

Illustration: Li-Anne Dias.