25 IPOs that skyrocketed on their first day
Every fledgling business owner hopes that their initial public offering (IPO) would be successful. A successful IPO means that investors and the public have embraced the brand and that the company would be flushed with cash for expansion and new infrastructure.
Uber's recent $8 million IPO, while impressive, failed to meet the company's then-$100 billion valuation. Compared to other large IPOs like Facebook's $16 billion 2012 offering, Visa's 2008 $18 billion offering, and Alibaba's 2014 $25 billion IPO, Uber neglected to adequately translate its popularity into investors' confidence.
An IPO—the first public offering of stock once a company transitions to a publicly traded corporation—largely hinges on how large institutional investors feel about the company. This may reflect management strength, industry competition, recent mergers in the field, and the general buzz both inside and outside the company.
While a strong IPO may suggest that a business has the right elements to succeed, it is no guarantee. In an analysis of more than 7,000 IPOs from 1975 to 2011, more than 60% had a negative absolute return after five years in the secondary market. From 2000 to 2016, it's the absolute and excess six months returns that have been largely negative.
Stacker has looked at the data for IPOs from the last five calendar years—June 2014 to June 2019—to determine which IPOs had the best first-day returns. We gathered data from IPOScoop.com and the Warrington College of Business at the University of Florida for our analysis. Our analysis will consider the initial public offering—or the price the company sold its shares to investors—and not the opening price, which is the selling price the stock had on the market when first publicly introduced.
As IPO data tends to be proprietary, this list is inclusive, but—despite our best efforts—not exhaustive. This list is also exclusive to IPOs launched in the United States. As stated above, a strong first-day return is unlikely to speak of the current state of the company, so we will also look at where the companies stand as of the writing of this article.
Keep reading to find out which fast-food restaurant had a top IPO.
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#25: Turning Point Therapeutics
IPO offering price: $18
Closing price at end of first day: $28.90
Share price increase on IPO's first day: 160.56%
Turning Point Therapeutics is a cancer therapy pharmaceutical firm dedicated to addressing treatment resistance. A key focus of the company is a class of drugs known as tyrosine kinase inhibitors (TKIs), for which they have developed a new generation. At the close of selling June 7, Turning Point (NASDAQ: TPTX) was selling at $34.49.
IPO offering price: $19
Closing price at end of first day: $31.20
Share price increase on IPO's first day: 164.21%
AVROBIO is a gene therapy developer, creating treatments for serious rare diseases. The company identifies itself as a “clinical stage company developing disruptive therapies that have the potential to transform patients' lives in a single dose.” As of the close of trade June 7, AVROBIO (NASDAQ: AVRO) was selling at $14.26.
#23: Bloom Energy
IPO offering price: $15
Closing price at end of first day: $25
Share price increase on IPO's first day: 166.67%
Bloom Energy is an on-site electricity generation server manufacturer. Bloom Energy claims that its servers produce no emissions and are clean, fuel-flexible, and competitive cost-wise in areas with high energy costs. A critique of Bloom's servers by Institute for Energy Research policy associate Alex Fitzsimmons, however, places them as no better than natural gas energy generators. At the close of trading June 7, Bloom Energy (NYSE: BE) was selling at $10.22.
#22: Guardant Health
IPO offering price: $19
Closing price at end of first day: $32.20
Share price increase on IPO's first day: 169.47%
Guardant Health is a blood-test developer for high-risk populations, early detection, and for cancer recurrence monitoring. Guardant Health's chief product, Guardant360, is advertised to provide comprehensive results from a single blood draw in seven days that would avoid the need for surgical biopsies or tissue specimen examinations. At the end of trading June 7, Guardant Health (NASDAQ: GH) was selling at $90.85.
#21: Zoom Video Communications
IPO offering price: $36
Closing price at end of first day: $62
Share price increase on IPO's first day: 172.22%
Zoom Video Communications is an enterprise-level video-conferencing service provider. Using its cloud-based solution, Zoom promises clear video and audio, an affordable price, scalability, and minimum to no latency. At the end of trading June 7, Zoom (NASDAQ: ZM) was selling at $94.05.
IPO offering price: $18
Closing price at end of first day: $31.25
Share price increase on IPO's first day: 173.61%
Allakos is a pharmaceutical firm that develops antibodies to target eosinophilic gastroenteritis and other inflammatory and proliferative diseases. These antibodies serve to limit the effectiveness of eosinophils and mast cells in the respiratory and digestive tracts, creating a solution to diseases like asthma and chronic obstructive pulmonary disease. At the end of trading June 7, Allakos (NASDAQ: ALLK) was selling at $40.56.
IPO offering price: $14.50
Closing price at end of first day: $25.46
Share price increase on IPO's first day: 175.59%
Jumia is a pan-African online shopping platform based in Nigeria which provides logistical support to over 81,000 African companies and individual sellers. The various platforms under Jumia's umbrella include Jumia Travel, Jumia Food, Jumia Deals, Jumia One, and Jumia Pay. At the end of trading June 7, Jumia Technologies AG ADR (NYSE: JMIA) was selling at $24.50.
#18: ShockWave Medical
IPO offering price: $17
Closing price at end of first day: $30.50
Share price increase on IPO's first day: 179.41%
Shockwave Medical is a medical device manufacturer addressing the treatment of calcified cardiovascular disease. The company's equipment uses localized delivery of sonic pressure waves to treat cardiovascular plaque in a treatment they call “Intravascular Lithotripsy.” At the end of trading June 7, Shockwave Medical (NASDAQ: SWAV) was selling at $62.91.
#17: Silk Road Medical
IPO offering price: $20
Closing price at end of first day: $36.18
Share price increase on IPO's first day: 180.9%
Silk Road Medical is a medical device manufacturer addressing stroke treatment and prevention. Silk Road's approach is to treat carotid artery disease through a technique the company calls transcarotid artery revascularization. This procedure involves the placement of a sheath in the carotid artery, which connects to a system that reverses blood flow from the brain, to prevent the depositing of plaque fragments in the brain's blood vessels. At the end of trading June 7, Silk Road Medical (NASDAQ: SILK) was selling at $44.55.
IPO offering price: $24
Closing price at end of first day: $44.94
Share price increase on IPO's first day: 187.25%
Avalara is a provider of automated tax compliance software. Using a cloud-based platform, Avalara allows integrations that would allow any e-commerce platform to automatically calculate sales taxes and VAT for any jurisdiction worldwide and prepare the needed paperwork. At the end of trading June 7, Avalara (NYSE: AVLR) was selling at $72.07.2018 All rights reserved.