With healthcare IPOs consistently topping the list over the past few weeks, the market reaction to medical device maker, EndoChoice Holdings , seems rather impressive when compared with other recently released IPOs. EndoChoice debuted on the New York Stock Exchange (NYSE) on Jun 5, 2015 under the symbol "GI" with an offering of 6,350,000 shares.

On Thursday, Jun 4, this Georgia-based company specializing in gastrointestinal endoscopy priced its planned IPO at $15 per share. Although, this coincided with the lower end of its initial expectation of $15 to $17 per share indicating sluggish market demand, following the IPO release, stock price shot up 13.33% to reach $17.00 in its very first trading session.

This calls for an impressive performance when compared to the same for hospital software company Evolvent Health which rose 10.94% to finish its first trading day at $18.86. We also take note of last month’s IPO release of Press Ganey Holdings, Inc. that works on client connections and relationships. This company announced the pricing of its IPO of 8,900,000 shares at an offering price of $25.00 per share on May 20. Although the stock price was above the earlier expected range of $22 to $24, it showed a 10% gain to close at $27.50 in its second trading session.

EndoChoice’s IPO is scheduled to close on Jun 10, 2015, subject to customary closing conditions. The lead underwriters of the IPO are J.P. Morgan (JPM -Analyst Report), BofA Merrill Lynch, William Blair and Stifel.

Should You Have EndoChoice in Your Portfolio?

Founded in 2008, EndoChoice works on manufacturing and commercialization of platform technologies including endoscopic imaging systems, devices and infection control products, and pathology services to target the wide and fast growing gastrointestinal market including colon cancer. The company has huge sales network in the United States and works with distribution partners in 25 countries. 2014 marked the fifth consecutive year in which EndoChoice was recognized as one of the fastest growing companies in the U.S. by Inc. Magazine. EndoChoice’s top product is Fuse – a full spectrum endoscopy system.

With its NYSE listing, we expect EndoChoice to increase its scale as well as invest more rapidly in research and development for a broader and advanced product portfolio. We believe the company’s strong growth profile and fundamentals hold strong potential to make it a significant value stock, going forward.

Upcoming Healthcare IPOs

As per a recent report by Paul Ausick in 247wallst.com, of the 73 IPOs that have been  released so far in the current year, 32 are from the healthcare sector. The coming week will see three more healthcare IPO releases viz. clinical-stage biopharmaceutical company, Axovant Sciences Ltd. (expected price range of $13 to $15; plans to offer 17.9 million shares); medical device company, Invuity Inc. (expected price range of $14 to $16; planned offer of 4 million shares) and Biotie Therapies OYJ, a Finland-based biopharmaceutical company that plans to offer 3.4 million shares at an IPO price of $14.82.