As the celebration of the New Year fades into the background and the Trump rally continues, people will start asking: “Where is the IPO market?” The answer is found in the pages of history.
Checking back over the last five years, the IPO records show the calendar usually starts coming to life in mid-January. That wasn’t the case last year, but it was an unusually slow year.
Looking at 2016 and 2015
In 2016, bankers priced 109 IPOs that raised $21.6 billion, according to the U.S. Securities and Exchange Commission filings. The first IPO started trading in February.
On Feb. 3, 2016, Editas Medicine (EDIT) was the first IPO of 2016 to begin trading. The company offered 5.9 million shares at $16 each. Editas closed its opening day at $18.20. On Friday, Jan. 6, 2017, Editas ended the day at $17.51 – UP 9.44 percent from its IPO price.
In 2015, bankers priced 173 IPOs that raised $32.4 billion. The first started trading in January.
On Jan. 16, 2015, County Bancorp (ICBK) was one of the first two IPOs of 2015 to start trading. The company offered 1.18 million shares at $15.75 each. County Bancorp closed its opening day at $17. On Friday, Jan. 6, 2017, the stock ended at $25.45 – UP 61.6 percent from its IPO price.
On Jan. 16, 2015, Patriot National (PN) was the second of the first two IPOs of 2015 to start trading. The company offered 8.3 million shares at $14 each. Patriot National closed its opening day at $13.50. On Friday, Jan. 6, 2017, the stock ended at $4.86 – DOWN 65.3 percent from its IPO price.
Revisiting 2014
In 2014, bankers priced 292 IPOs that raised $85.4 billion. The first started trading in January.
On Jan. 10, 2014, GlycoMimetics (GLYC) was the first IPO of 2014 to start trading. The company offered 7 million shares at $8 each. GlycoMimetics closed its opening day at $9.01. On Friday, Jan. 6, 2017, the stock ended at $6.42 – DOWN 19.8 percent from its IPO price.
Snapshots of 2013 and 2012
In 2013, bankers priced 232 IPOs that raised $54.3 billion. The first IPO started trading in January.
On Jan. 15, 2013, USA Compression Partners (USAC) was the first IPO of 2013 to start trading. The company offered 11 million shares at $18 each. The stock closed its opening day at $17.60.
On Friday, Jan. 6, 2017, USA Compression Partners ended at $18.31 – UP 1.7 percent from its IPO price.
In 2012, bankers priced 146 IPOs that raised $43.7 billion. The first one started trading in January.
On Jan. 19, 2012, Renewable Energy Group (REGI) was the first IPO of 2012 to start trading. The company offered 7.2 million shares at $10 each. It closed its opening day at $10.10. On Friday, Jan. 6, 2017, Renewable Energy Group closed at $9.50 – DOWN 5 percent from its IPO price.
So there you have it – most IPOs made their debuts in mid-January and most did OK in the aftermarket. Nevertheless, this is Wall Street and anything can happen.
Looking into the week of Jan. 16, 2017, the IPO Calendar has nothing. But anything can happen on Monday morning, Jan. 9, 2017, when the SEC’s filing window opens for business.
Stay tuned.
Disclosure: Neither the author nor anyone else on the IPOScoop.com staff has a position in any stocks mentioned, nor do we trade or invest in IPOs. The author and IPOScoop.com staff do not issue advice, recommendations or opinion.