The excitement in the IPO market through the first half of the year has definitely been waning. Even though the pipeline is again filling up quickly, action has pretty much come to a halt since the first half of August, and the companies that have gone public this year seem to have lost their gains.
According to the Wall Street Journal, more than half of US companies that went public this year are now trading below their debut prices, with Dealogic putting the number at 63 per cent. Pandora, Epocrates and Renren are among those ‘underwater’ after posting substantial day-one gains.
On average, US comapnies that went public this year are down 6.5 per cent – compared to 11.45 per cent for the S&P 500 index. Half of them are trading better than the index. LinkedIn, Zillow and Qihoo 360 are among those still trading above their IPO prices.
Source: Wall Street Journal
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