There was volatile action in the IPO market this past week as
certain stocks bucked the trend and posted strong gains, while
others fell with the broader market. Today we'll take a look at
last week's action and look forward to companies scheduled to go
public this week - including two companies that postponed their
offerings and are finally set to launch.
Here's a chart showing the winners from last week. The return in
blue represents the companies' returns through last Monday, August
. The return in red shows the companies' returns through yesterday,
. Note that I am using each company's first traded price as the
starting price, not the IPO offer price. I do this because this
represents a more realistic price that an average investor could
have purchased shares at. The IPO offer price is typically only
available to select clients and institutional investors.
QLIK Technologies (Nasdaq: QLIK)
was the biggest winner last week, as the company saw its share
price surge from $14.30 last Monday to $17.69 as of yesterday's
close. The stock jumped over 28 percent.
Other winners included four companies that went public in the
beginning of August. This group seems to be sticking together and
performing well, as each of their stocks moved higher over the last
China Kanghui Holdings (
jumped 9 percent and its total gain increased from 17 percent to 26
RealPage Inc. (Nasdaq: RP)
increased by 9 percent, and
MediaMind Technologies Inc. (Nasdaq: MDMD)
, moved higher by 6.8 percent over the course of the week.
But the big winner of the 'fab four' was
MakeMyTrip Limited (Nasdaq: MMYT)
- the stock jumped 24.7 percent last week. The company has now
returned 36.8 percent since its first day of trading. Recall that
these returns are calculated using the opening price on its first
day of trading and yesterday's closing price.
Gordmans Stores Inc. (Nasdaq: GMAN)
IntraLinks Holdings Inc. (
both had a solid week and recovered some of their previous losses
since going public. IntraLinks gained over 7 percent, reducing its
total loss to only 1.1 percent. At the same time, Gordman Stores
gained 6.8 percent so it's down just 3.1 percent as of yesterday's
Tesla Motors Inc. (Nasdaq: TSLA)
Molycorp Inc. (
also moved higher, increasing total returns by 7 and 8 percent,
***But all is not rosy in the IPO world - we had some real
losers last week as well (at least in terms of stock price
returns). Some fell more than the S&P 500's 1.1 percent drop.
The chart below shows the 4 companies that struggled.
NXP Semiconductors NV (Nasdaq: NXPI)
was the biggest loser, as its return decreased from -9.4 percent to
D. Medical Industries Ltd (Nasdaq: DMED)
dropped around 5 percent.
The damage was not that severe for
Trius Therapeutics Inc. (Nasdaq: TSRX)
NuPathe Inc. (Nasdaq: PATH)
which fell modestly, around 3 percent.
***There are three companies scheduled to go public this week,
including two we've looked at in previous articles. Both of these
postponed their IPOs and are now ready to launch this week.
These two companies are
Legacy Healthcare Properties Trust (LRP)
Legacy Healthcare is a real estate investment trust (REIT) that
will own six senior housing facilities. Last week the company
planned to raise $175 million by offering 8.75 million shares at
$20 per share. One of the underwriters blamed a "difficult market"
for the delay. The pricing of the IPO is now on a "day-to-day"
basis so be sure to stay on your toes if you want to get in on this
SurgiVision, a developer of medical equipment and software,
originally filed to offer 2.5 million shares at a price range of
$13 to $15 a share in July. It then lowered its price range to $9
to $11 a share, and later postponed the deal. The company filed
again in August and expects to raise $18 million by offering 3.7
million shares at $5 a share.
is the third company expected to launch this week and plans to list
on the NYSE under ticker symbol
. The company owns 36 commercial properties, primarily in Houston,
and plans to raise $50 million in the offering by selling 3.3
million shares between $14 and $16 a share. Last year the company
had $32 million in sales.
In last week's
Small Cap Investor Daily
, we discussed the advantages of investing in REITs in today's
to revisit that article. That's a wrap for this week's IPO