After opening higher, building products maker Azek ended its first trading day up over 18%. The company raised about $765 million in the biggest initial public offering of the week.

LATEST IPOS:

Vroom (VRM) opened on June 9 at $40.25 after having priced its 21.25 million share IPO at $22.00 per share. The deal size was increased to 21.25 million shares from 18.75 million shares, and the deal priced above the $18.00-$21.00 range. Goldman Sachs, BofA, Allen & Co., and Wells Fargo acted as joint book running managers for the offering. Vroom is an e-commerce company that allows people to buy and sell used vehicles.

After the stock's opening, Benchmark analyst Michael Ward initiated coverage of Vroom with a "Buy" rating and a $55 price target. The company's initial public offering "seems to have hit the target," said the analyst, who added that he was making an "attempt to get out in front of a pricing opportunity in the early days of trading."

Vroom's e-commerce segment offers access to consumers, provides transparent pricing, real-time financing, and home delivery while the virus-related shutdown resulted in an expansion of selling vehicles on-line, Ward tells investors. Until there is a clear path to profitability, he sees a multiple of revenue being the best way to determine valuation for Vroom shares, noting that he is using two times expected 2020 revenue to arrive at his $55 target.

Lantern Pharma (LTRN) opened on June 11 at $14.80. The company had priced 1.75 million shares at $15.00. ThinkEquity acted as lead book running manager for the offering. Lantern Pharma is a biotech redeveloping abandoned drugs for non-small cell lung cancer.

The AZEK Company (AZEK) opened on June 12 at $27.50. The company had priced 33.25 million shares at $23.00. The deal size was raised to 33.25 million shares of common stock from 31.25 million share of common stock, and priced above the $19.00-$21.00 range. Barclays, BofA, Goldman Sachs, and Jefferies acted as joint book running managers for the offering.

Azek is a manufacturer of residential and commercial building products, committed to innovation, sustainability and research and design. The company's composite decking solutions compete with those made by Trex (TREX).

Avidity Biosciences (RNA) opened on June 12 at $26.50. The company had priced 14.4 million shares at $18.00. The deal size was increased to 14.4 million shares from 12.0 million, and priced at high end of $17.00-$18.00 range. Cowen, SVB Leerink, Credit Suisse, and Wells Fargo are acting as joint book running managers for the offering. Avidity is a preclinical-stage biopharmaceuticals company backed by Eli Lilly (LLY).

Generation Bio (GBIO) opened on June 12 at $22.15. The company had priced 10.5 million shares at $19.00. The deal size was increased to 10.5 million shares from 10 million shares, and priced at the high end of the $18.00-$19.00 range. JPMorgan, Jefferies, and Cowen acted as joint book running managers for the offering. Generation Bio is a preclinical biotech developing gene therapies for rare diseases.

Burning Rock Biotech (BNR) opened at $22.80 on June 12 after the company priced 13.5 million shares at $16.50. Morgan Stanley, BofA, and Cowen acted as joint book running managers for the offering. China’s "number one NGS-based cancer therapy selection company" based on number of patients tested in 2019, aims to "transform precision oncology and early cancer detection," according to the company's IPO prospectus.

Vaxcyte (PCVX) opened at $20.80 on June after having priced 15.6 million shares at $16.00. The deal size was increased to 15.6 million shares from 14 million shares, and priced at the high-end of the $14.00-$16.00 range. BofA, Jefferies, and Evercore ISI acted as joint book running managers for the offering.

The company seeks "to improve global health by developing superior and novel vaccines designed to prevent or treat some of the most common and deadly infectious diseases worldwide," according to its offering prospectus.

PERFORMANCE:

• Vroom closed trading on Friday at $43.03 per share.
• After opening at $14.80, Lantern Pharma finished Friday at $14.75.
• Generation Bio ended the week at $24.69 after opening at $22.15.
• AZEK finished Friday at $27.15. 
• Avidity Biosciences ended its first trading day at $28.50.
• After opening higher at $22.80, Burning Rock Biotech finished Friday at $24.63.
• Vaxcyte jumped in its first trading day, ending Friday at $26.15.

UPCOMING IPOS 

Among the upcoming IPOs are ADC Therapeutics (ADCT), Ayala Pharmaceuticals (AYLA), Lyra Therapeutics (LYRA), and Royalty Pharma (RPRX).

ADC Therapeutics is a biotechnology company focused on cancer treatments, looking to raise up to $185.3 million in its IPO.

Ayala Pharmaceuticals is a clinical-stage oncology company focused on developing and commercializing small molecule therapeutics for patients suffering from rare and aggressive cancers, primarily in genetically defined patient populations.

Lyra Therapeutics is a biotech specializing in treatments for ear, nose, and throat diseases.

Royalty Pharma acquires biopharma royalties and also provides funds to support clinical trials in exchange for future royalties.