Last week was a busy one for the initial public offering market. Zillow and Francesca’s Holdings posted exciting gains at their debuts. The rest of the offerings were a mixed bag, but the sheer volume of activity suggests a comeback for the IPO market, especially when you take a look at the pipeline.
Let’s take a look at the five most important IPO market developments of last week:
1. Zillow: the real estate website went public last week, turning an initial price of $20 per share into a first-day high of $60. According to Renaissance Capital, Zillow scored the number three spot in day-one returns this year (after Qihoo 360 and LinkedIn).
2. Skullcandy: this headphone manufacturer went public at $20 a share on Tuesday (up from its original range of $17 to $19 a share). After hitting $23 in the morning, Skullcandy settled down to a flat close. It ended the week down 2 per cent from the IPO price.
3. Francesca’s Holdings: the women’s fashion chain also upsized its IPO, going public at $17 a share instead of the proposed range of $14 to $16. At the end of its first day as a public company, Francesca’s generated a return of 63 per cent, putting it behind Zillow on the day-one performance list this year.
4. Dunkin’ Brands: it looks like the IPO market is becoming more and more a consumer game, with Dunkin’ Brands and Teavana among the dozen companies expected to price next week. Also look for the Chefs’ Warehouse and Tangoe.
5. IPO performance: so far this year, IPOs are up 13 per cent on average. The pipeline is rich. Money is flowing into the IPO market. Look for this space to heat up!
Source: Renaissance Capital