Consider this: As of Friday’s close, on Feb. 15, 2013, the scorecard of the last 100 IPOs (see Last 100 IPOs) showed 76 winners, 24 losers and an average gain of 29.7 percent. The Dow Jones Industrial Average during that time was up 6.81 percent, the S&P 500 was up 10.7 percent and the NASDAQ Composite Index was up 5.36 percent.
But there’s more to this story.
From Orphan to Winner
Eight of the last 100 IPOs had gains of more than 100 percent or better. Interestingly enough, a couple were unwanted children when it came time to price them. The top winner of the Last 100 IPOs happened to be an orphan.
WageWorks (WAGE), based in San Mateo, California, provides tax-advantaged programs for consumer-directed health, commuter and other employee spending account benefits.
WageWorks priced its IPO of 6.5 million shares at $9 each on May 11, 2012. That was below its original price range of $10 to $12 per share. The IPO opened at $9.99 on May 12, still below its original filing price. It closed at $40.05 on Feb.15, 2013 – UP 146.1 percent from its initial offering price.
A Place in the Sun
Another one of today’s super IPO winners that had trouble getting out the door was SolarCity (SCTY).
SolarCity, like WageWorks, is based in San Mateo. SolarCity designs, installs and sells or leases solar energy systems to residential and commercial customers.
SolarCity priced its IPO of 11.5 million shares at $8 each on Dec. 12, 2012. That was well below its original filing of 10 million shares at $13 to $15 each. The IPO opened at $9.25 on Dec. 13, 2012, still below its original filing price. It closed at $17.77 on Feb.15, 2013 – UP 122.1 percent from its initial offering price.
Follow the Money
There also was an unusual ending to an IPO that was a 100 percent winner, but with a short shelf life in the marketplace.
Eloqua Limited, based in Vienna, Virginia, provides software solutions that let businesses accelerate revenue growth and improve revenue predictability by automating, monitoring and measuring their complex marketing and sales initiatives.
Eloqua priced its IPO of 8 million shares at $12 each on Aug. 1, 2012. It opened at $12.89 on Aug. 2. Five months later, Eloqua was acquired for $23.50 per share on Dec. 20 by Oracle (ORCL) – UP 104.3 percent from its initial offering price.
That brings us to this shortened holiday week, with the U.S. stock market closed on Monday for Presidents Day. The IPO market is still in its mid- to end-of-February hibernation period. The IPO calendar is clean and green.
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 opinions.