Sprouts Farmers Market ( SFM ), which operates over 160 natural and organic grocery stores in eight southwestern states, soared nearly 123% in its market debut on Thursday, beating out Noodles & Company ( NDLS ) for the best first-day gain of 2013. The company raised $333 million after pricing well above its initial price range. Sprouts' opening day represents the best first-day return for a US IPO since Qihoo 360 Technology ( QIHU ) gained 134% on March 30, 2011 and marks the first US-based company to gain over 120% since NYMEX went public in November 2006. Sprouts is the fourth natural grocer to go public in the last four years, following the successful IPOs of Fairway Markets (FWM; up 92% from its IPO price), Natural Grocers (NGVC; 139%) and The Fresh Market (TFM; 145%).
Top Five First-Day Returns Since 2011
Company
Ticker
Business
Deal Size($mm)
First-DayReturn
TotalReturn
Qihoo 360 Technology
QIHU
Chinese internet security products
$176
134%
349%
Sprouts Farmers Market
SFM
Value-priced natural grocer
$333
123%
123%
LinkedIn
LNKD
Online professional network
$353
109%
353%
Splunk
SPLK
Data analysis software
$230
109%
194%
Noodles & Company
NDLS
Fast-casual restaurant chain
$96
104%
141%
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
