Bloomberg’s IPO Index is a cap-weighted index made up of companies that have gone public within the last year.  Below is a chart highlighting the performance of the Bloomberg IPO index versus the S&P 500 since the S&P’s bull market began on March 9th, 2009.  After performing in-line with the S&P over the first two years of the current bull, the IPO index weakened significantly from early 2011 through mid-2012.  From 2013 through late 2014, IPOs knocked it out of the park, and the IPO index nearly caught up to the S&P by October 2014.  Ever since that October 2014 peak, however, it has been all downhill for IPOs.  From its high in 2014 to its low on February 11th of this year, the IPO index fell 42.7%.  Over that same time period, the S&P 500 only fell 10%.

Since both the S&P 500 and the Bloomberg IPO index made their 2016 lows on February 11th, the IPO index has surged 37%, while the S&P is up 15%.  Even after this massive outperformance over the last 3+ months, however, the S&P is up 88 percentage points more than the IPO index during the current bull market.  As shown below, the IPO index is up 122% since 3/9/09, while the S&P is up 210%.  Needless to say, IPOs have a lot of catching up to do.

BIPOvsSPX

There are currently just under 90 stocks in the Bloomberg IPO index, and their average performance versus their IPO price is a decline of 2.83%.  That means the average stock that has IPOd over the last year is down versus its IPO price.  No wonder there have been so few IPOs recently!

While the average IPO has fallen versus its IPO price, obviously some have done well.  We highlight them below.  These recent IPOs have gained more than 10% versus their IPO price.  For each stock, we include its sector, current market cap, current price, year-to-date change (where applicable), IPO date, % change since its IPO price, and % change since the price it opened at on the secondary market.  One thing you’ll notice is that while these stocks are all up 10%+ versus their IPO prices, all of them are not up versus the price they opened at on secondary markets.

Leading the way to the upside is Aqua Metals (AQMS) with a gain of 123.6% from its IPO price.  While AQMS is an Industrial sector stock, the next seven best performers are all Health Care/Biotech names.

If you have some time, we recommend looking through each of these names using whatever tools you like to use just to stay on top of the type of companies that have done well since recently going public.

TopIPOs

 

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