Facebook (Ticker: FB) is down ~47% since its IPO in May. Now, it is not the most botched IPO ever unfortunately as the infamous record belongs to BATS Exchange (Ticker: BATS) which operates an alternate stock exchange to NYSE and NASDAQ. (Read the Business Insider story here: 8 Unforgettable IPO Disasters)
Also, FB is not the worst performing IPO either. Groupon (Ticker: GRPN) and Zynga (Ticker: ZNGA, proudly led by Mark Pincus), are down 77% and 74% respectively since their IPO. In comparison, FB has done ok, it could be worst but a rapid strategy shift by FB including the emphasis on mobile and a decision to allow e-commerce transactions (Facebook Gifts) on Facebook have provided some kind of a floor under its stock. Here is a chart comparing the three (not-so) darlings of the Web 2.0.
Anyhow, below is a table of the best IPOs for this year. Guidewire (Ticker: GWRE) and Demandware (Ticker: DWRE) are the two cloud technology companies in the list that have done very well returning 137% and 108% till date.
Palo Alto Network (Ticker: PANW) is up 16% since IPO with returns of 48% over its IPO price of $42. Splunk (Ticker: SPLK) is down about 10% since IPO but still giving returns of 90% over its IPO price of $17. Both these companies didn't make the cut in the table above.
Here is a list of the worst performing IPOs till date. If one were to change the time period from YTD to 12-months, Zynga shows up in the list, no surprise there. Social gaming is a fast changing environment and ZNGA faces crisis in confidence with so many departures.
Take a closer look, FB is barely staying away from this infamous list. On a similar note, LinkedIn (Ticker: LNKD) is up approximately 80% till date. What a contrasting tale of the two social network companies!
So far in 2012, IPOs have resulted in 20% returns which is better than the -11% returns IPO market yielded in 2011. Since there are about 2.5 months more to go before the curtains drop on 2012, the 2012 IPO return might beat the 25% returns the year 2010 produced.
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One very encouraging signs for the IPO investors this year has been the 13% average first day pop in IPOs that is line with what IPO market observed before the great recession (~13%). And to all the naysayers out there who claim that tech-stocks are in a bubble, take a look at the average opening day pop in 1999 (72%) and 2000 (56%) and compare it to 2012, you will hold your peace for few more years at least!
Workday (Ticker: WDAY) is on the deck for this week. Do you due-diligence before investing.
Happy IPO Investing!
Jitender
Source: Renaissance Capital, Greenwich, CT (www.renaissancecapital.com).
Also, FB is not the worst performing IPO either. Groupon (Ticker: GRPN) and Zynga (Ticker: ZNGA, proudly led by Mark Pincus), are down 77% and 74% respectively since their IPO. In comparison, FB has done ok, it could be worst but a rapid strategy shift by FB including the emphasis on mobile and a decision to allow e-commerce transactions (Facebook Gifts) on Facebook have provided some kind of a floor under its stock. Here is a chart comparing the three (not-so) darlings of the Web 2.0.
Anyhow, below is a table of the best IPOs for this year. Guidewire (Ticker: GWRE) and Demandware (Ticker: DWRE) are the two cloud technology companies in the list that have done very well returning 137% and 108% till date.
IPO Top Performers (YTD)
| Company | Offer Date | Under | Industry | Deal Size (mm) | Offer Price | First Day Close | Closing Price | First Day Return | Total Return | |
|---|---|---|---|---|---|---|---|---|---|---|
| Supernus Pharmac | 4/30/12 | Citi | Health Care | $50 | $5.00 | $5.37 | $12.77 | 7.4 % | 155.4 % | |
| Nationstar Mortg | 3/7/12 | Merrill | Financial | $233 | $14.00 | $14.20 | $33.29 | 1.4 % | 137.8 % | |
| Guidewire Softwa | 1/24/12 | JPM | Technology | $115 | $13.00 | $17.12 | $30.84 | 31.7 % | 137.2 % | |
| Annies | 3/27/12 | CS | Consumer | $95 | $19.00 | $35.92 | $44.87 | 89.1 % | 136.2 % | |
| Demandware | 3/14/12 | GS | Technology | $88 | $16.00 | $23.59 | $33.31 | 47.4 % | 108.2 % |
Palo Alto Network (Ticker: PANW) is up 16% since IPO with returns of 48% over its IPO price of $42. Splunk (Ticker: SPLK) is down about 10% since IPO but still giving returns of 90% over its IPO price of $17. Both these companies didn't make the cut in the table above.
Here is a list of the worst performing IPOs till date. If one were to change the time period from YTD to 12-months, Zynga shows up in the list, no surprise there. Social gaming is a fast changing environment and ZNGA faces crisis in confidence with so many departures.
IPO Worst Performers (YTD)
| Company | Offer Date | Under | Industry | Deal Size (mm) | Offer Price | First Day Close | Closing Price | First Day Return | Total Return | |
|---|---|---|---|---|---|---|---|---|---|---|
| Envivio | 4/24/12 | GS | Technology | $70 | $9.00 | $8.49 | $2.15 | -5.7 % | -76.1 % | |
| Audience | 5/9/12 | JPM | Technology | $90 | $17.00 | $19.10 | $5.65 | 12.4 % | -66.8 % | |
| CafePress | 3/28/12 | JPM | Technology | $86 | $19.00 | $19.03 | $8.07 | 0.2 % | -57.5 % | |
| Ceres | 2/21/12 | GS | Materials | $65 | $13.00 | $14.80 | $5.77 | 13.8 % | -55.6 % | |
| Renewable | 1/18/12 | UBS | Energy | $72 | $10.00 | $10.10 | $5.16 | 1.0 % | -48.4 % |
Take a closer look, FB is barely staying away from this infamous list. On a similar note, LinkedIn (Ticker: LNKD) is up approximately 80% till date. What a contrasting tale of the two social network companies!
So far in 2012, IPOs have resulted in 20% returns which is better than the -11% returns IPO market yielded in 2011. Since there are about 2.5 months more to go before the curtains drop on 2012, the 2012 IPO return might beat the 25% returns the year 2010 produced.
One very encouraging signs for the IPO investors this year has been the 13% average first day pop in IPOs that is line with what IPO market observed before the great recession (~13%). And to all the naysayers out there who claim that tech-stocks are in a bubble, take a look at the average opening day pop in 1999 (72%) and 2000 (56%) and compare it to 2012, you will hold your peace for few more years at least!
Workday (Ticker: WDAY) is on the deck for this week. Do you due-diligence before investing.
Happy IPO Investing!
Jitender
Source: Renaissance Capital, Greenwich, CT (www.renaissancecapital.com).
