At Friday’s close, 12 of September’s 15 offerings finished above their initial offering prices with an average gain of 17.5 percent. That was 10.9 times better than the underlying stock market.
On Sept. 29, 2006, the Nasdaq Composite Index, the barometer of the IPO market, closed at 2,258.43, up 3.42 percent from 2,183.75 on Aug. 31, 2006.
Here were the highlights from September’s IPO market:
Riverbed Technology (Nasdaq: RVBD), the San Francisco-based provider of wide-area data services solutions, priced 8.8 million shares at $9.75 each on Sept. 20. On Sept. 29, it closed at $19.50 per share, UP 100 percent from its initial offering price.
New Oriental Education & Technology Group (NYSE: EDU), the Beijing-based provider of private education services, priced 7.5 million shares at $15 each on Sept. 6. On Sept. 29, it closed at $24.20 per share, UP 61.3 percent from its initial offering price.
Here were the highlights from last week’s IPO market.
Bare Escentuals (Nasdaq BARE), the San Francisco-based provider of branded mineral-based cosmetics, was priced at $22 per share, up from a filing range of $15 to $17 per share. It started trading on Friday at $28 and closed at $27.15, UP 23.4 percent from its initial offering price.
Mindray Medical International (NYSE: MR), the China-based medical device maker, priced its IPO at $13.50 per share, up from the filing range of $10 to $12 per share. It started trading on Tuesday and closed its opening day at $17.55; it closed Friday at $16.69, UP 23.6 percent from its initial offering price.
All in all, September 2006 was a good month for IPOs.
A Passing Thought
Be careful what you wish for.
The Dow Jones Industrial Average fell short of hitting a new closing high in Friday’s market. It finished at 11,679.07 versus 11,722.98 on Jan. 14, 2000. Here’s what took place in January 2000:
- Friday, Jan. 14: The Dow closed at 11,722.98, a new high
- Monday, Jan. 17: The market was closed for the national holiday to observe Martin Luther King, Jr.’s birthday
- Tuesday, Jan. 18: The Dow closed at 11,560.72, down 162.62 points
- Wednesday, Jan. 19: The Dow closed at 11,489.36, down 71.36
- Thursday, Jan. 20: The Dow closed at 11,351.30, down 138.06
- Friday, Jan. 21: The DJIA closed at 11,251.71, down 99.59
- Monday, Jan. 24: The DJIA closed at 11,008.17, down 243.54
Four weeks after establishing a record closing high:
- Friday, Feb. 11: The DJIA closed at 10,425.21, down 1,297.77 points or off 10.9 percent from Jan 14, 2000.
Two months after establishing a record high on Jan. 14, 2000:
- Tuesday, March 14: The DJIA closed at 9,811.24, down 1,911.74 points or off 16.3 percent
But don’t be too sad about missing the Dow Jones Industrial Average missing the mark this past week. Instead, be grateful. Look at what happened the last time it closed at 11,772.98.