25 IPOs that skyrocketed on their first day
25 IPOs that skyrocketed on their first day
Every fledgling business owner hopes that their initial public offering (IPO) would be successful. A successful IPO means that investors and the public have embraced the brand and that the company would be flushed with cash for expansion and new infrastructure.
Uber's recent $8 million IPO, while impressive, failed to meet the company's then-$100 billion valuation. Compared to other large IPOs like Facebook's $16 billion 2012 offering, Visa's 2008 $18 billion offering, and Alibaba's 2014 $25 billion IPO, Uber neglected to adequately translate its popularity into investors' confidence.
An IPO—the first public offering of stock once a company transitions to a publicly traded corporation—largely hinges on how large institutional investors feel about the company. This may reflect management strength, industry competition, recent mergers in the field, and the general buzz both inside and outside the company.
While a strong IPO may suggest that a business has the right elements to succeed, it is no guarantee. In an analysis of more than 7,000 IPOs from 1975 to 2011, more than 60% had a negative absolute return after five years in the secondary market. From 2000 to 2016, it's the absolute and excess six months returns that have been largely negative.
Stacker has looked at the data for IPOs from the last five calendar years—June 2014 to June 2019—to determine which IPOs had the best first-day returns. We gathered data from IPOScoop.com and the Warrington College of Business at the University of Florida for our analysis. Our analysis will consider the initial public offering—or the price the company sold its shares to investors—and not the opening price, which is the selling price the stock had on the market when first publicly introduced.
As IPO data tends to be proprietary, this list is inclusive, but—despite our best efforts—not exhaustive. This list is also exclusive to IPOs launched in the United States. As stated above, a strong first-day return is unlikely to speak of the current state of the company, so we will also look at where the companies stand as of the writing of this article.
Keep reading to find out which fast-food restaurant had a top IPO.
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#25: Turning Point Therapeutics
IPO offering price: $18
Closing price at end of first day: $28.90
Share price increase on IPO's first day: 160.56%
Turning Point Therapeutics is a cancer therapy pharmaceutical firm dedicated to addressing treatment resistance. A key focus of the company is a class of drugs known as tyrosine kinase inhibitors (TKIs), for which they have developed a new generation. At the close of selling June 7, Turning Point (NASDAQ: TPTX) was selling at $34.49.
#24: AVROBIO
IPO offering price: $19
Closing price at end of first day: $31.20
Share price increase on IPO's first day: 164.21%
AVROBIO is a gene therapy developer, creating treatments for serious rare diseases. The company identifies itself as a “clinical stage company developing disruptive therapies that have the potential to transform patients' lives in a single dose.” As of the close of trade June 7, AVROBIO (NASDAQ: AVRO) was selling at $14.26.
#23: Bloom Energy
IPO offering price: $15
Closing price at end of first day: $25
Share price increase on IPO's first day: 166.67%
Bloom Energy is an on-site electricity generation server manufacturer. Bloom Energy claims that its servers produce no emissions and are clean, fuel-flexible, and competitive cost-wise in areas with high energy costs. A critique of Bloom's servers by Institute for Energy Research policy associate Alex Fitzsimmons, however, places them as no better than natural gas energy generators. At the close of trading June 7, Bloom Energy (NYSE: BE) was selling at $10.22.
#22: Guardant Health
IPO offering price: $19
Closing price at end of first day: $32.20
Share price increase on IPO's first day: 169.47%
Guardant Health is a blood-test developer for high-risk populations, early detection, and for cancer recurrence monitoring. Guardant Health's chief product, Guardant360, is advertised to provide comprehensive results from a single blood draw in seven days that would avoid the need for surgical biopsies or tissue specimen examinations. At the end of trading June 7, Guardant Health (NASDAQ: GH) was selling at $90.85.
#21: Zoom Video Communications
IPO offering price: $36
Closing price at end of first day: $62
Share price increase on IPO's first day: 172.22%
Zoom Video Communications is an enterprise-level video-conferencing service provider. Using its cloud-based solution, Zoom promises clear video and audio, an affordable price, scalability, and minimum to no latency. At the end of trading June 7, Zoom (NASDAQ: ZM) was selling at $94.05.
#20: Allakos
IPO offering price: $18
Closing price at end of first day: $31.25
Share price increase on IPO's first day: 173.61%
Allakos is a pharmaceutical firm that develops antibodies to target eosinophilic gastroenteritis and other inflammatory and proliferative diseases. These antibodies serve to limit the effectiveness of eosinophils and mast cells in the respiratory and digestive tracts, creating a solution to diseases like asthma and chronic obstructive pulmonary disease. At the end of trading June 7, Allakos (NASDAQ: ALLK) was selling at $40.56.
#19: Jumia
IPO offering price: $14.50
Closing price at end of first day: $25.46
Share price increase on IPO's first day: 175.59%
Jumia is a pan-African online shopping platform based in Nigeria which provides logistical support to over 81,000 African companies and individual sellers. The various platforms under Jumia's umbrella include Jumia Travel, Jumia Food, Jumia Deals, Jumia One, and Jumia Pay. At the end of trading June 7, Jumia Technologies AG ADR (NYSE: JMIA) was selling at $24.50.
#18: ShockWave Medical
IPO offering price: $17
Closing price at end of first day: $30.50
Share price increase on IPO's first day: 179.41%
Shockwave Medical is a medical device manufacturer addressing the treatment of calcified cardiovascular disease. The company's equipment uses localized delivery of sonic pressure waves to treat cardiovascular plaque in a treatment they call “Intravascular Lithotripsy.” At the end of trading June 7, Shockwave Medical (NASDAQ: SWAV) was selling at $62.91.
#17: Silk Road Medical
IPO offering price: $20
Closing price at end of first day: $36.18
Share price increase on IPO's first day: 180.9%
Silk Road Medical is a medical device manufacturer addressing stroke treatment and prevention. Silk Road's approach is to treat carotid artery disease through a technique the company calls transcarotid artery revascularization. This procedure involves the placement of a sheath in the carotid artery, which connects to a system that reverses blood flow from the brain, to prevent the depositing of plaque fragments in the brain's blood vessels. At the end of trading June 7, Silk Road Medical (NASDAQ: SILK) was selling at $44.55.
#16: Avalara
IPO offering price: $24
Closing price at end of first day: $44.94
Share price increase on IPO's first day: 187.25%
Avalara is a provider of automated tax compliance software. Using a cloud-based platform, Avalara allows integrations that would allow any e-commerce platform to automatically calculate sales taxes and VAT for any jurisdiction worldwide and prepare the needed paperwork. At the end of trading June 7, Avalara (NYSE: AVLR) was selling at $72.07.
#15: Principia Biopharma
IPO offering price: $17
Closing price at end of first day: $32.65
Share price increase on IPO's first day: 192.06%
Principia Biopharma is a late-stage pharmaceutical developer for immunological and oncological oral therapies. The company seeks to create small molecules ingestible pills that would have equal or better potencies to injectable cancer and immune-deficiency disease medicines. At the end of trading June 7, Principia Biopharma (NASDAQ: PRNB) was selling at $31.09.
#14: Cortexyme
IPO offering price: $17
Closing price at end of first day: $32.89
Share price increase on IPO's first day: 193.47%
Cortexyme is a clinical stage pharmaceutical company working to develop a cure to neural degenerative diseases, like Alzheimer's. Cortexyme's treatment targets a bacterial pathogen found in the brains of those suffering from these diseases. It is the hope of the company that inhibiting the bacteria would slow or stop the progression of Alzheimer's. At the end of trading June 7, Cortexyme (NASDAQ: CRTX) was selling at $24.97.
#13: Elastic NV
IPO offering price: $36
Closing price at end of first day: $70
Share price increase on IPO's first day: 194.44%
Elastic NV—previously Elasticsearch—is a Netherlands company that builds system-as-a-solution (SaaS) and locally installed platforms that simplify open search, security, and analytics use cases. The company is unique because its main software package, Elasticsearch, is open source, or free to use and alter. At the end of trading June 7, Elastic NV (NYSE: ESTC) was selling at $81.39.
#12: Zscaler
IPO offering price: $16
Closing price at end of first day: $33
Share price increase on IPO's first day: 206.25%
Zscaler is an information security company that offers a cloud-based solution to antivirus protection, firewalling, sandboxing, internet security, SSL inspections, and vulnerability management. The company also provides protection against dynamic malware attacks. At the end of trading June 7, Zscaler (NASDAQ: ZS) was selling at $75.51.
#11: ReTo Eco-Solutions
IPO offering price: $5
Closing price at end of first day: $10.57
Share price increase on IPO's first day: 211.4%
China-based ReTo Eco-Solutions produces and sells eco-friendly construction materials made from mining waste. Instead of cement, ReTo Eco-Solution's bricks, pavers, tiles, and aggregates contain—per the company's website—about 70% reclaimed fly ash and iron tailings. ReTo Eco-Solutions has undertaken the steepest stock drop for any company on this list, losing over 80% of its stock value in just 12 months. At the end of trading June 7, ReTo Eco-Solutions (NASDAQ: RETO) was selling at $1.51.
#10: Rewalk Robotics
IPO offering price: $12
Closing price at end of first day: $25.60
Share price increase on IPO's first day: 213.33%
ReWalk Robotics is an exoskeleton manufacturer for spinal-cord injury patients. Utilizing a wearable robotic brace system, the ReWalk System can enhance or replace hip and knee motions, allowing users to walk with a natural gait. The company's Restore System can be used to help rehabilitate leg disability due to stroke. At the end of trading June 7, ReWalk Robotics (NASDAQ: RWLK) was selling at $6.83.
#9: Global Blood Therapeutics
IPO offering price: $20
Closing price at end of first day: $43.11
Share price increase on IPO's first day: 215.55%
Global Blood Therapeutics is a clinical-stage pharmaceutical company that has a stated purpose of serving underserved communities. One of its products, Voxelotor, is an oral medication slated for the treatment of sickle-cell disease. At the end of trading June 7, Global Blood Therapeutics (NASDAQ: GBT) was selling at $59.97.
#8: Spark Therapeutics
IPO offering price: $23
Closing price at end of first day: $50
Share price increase on IPO's first day: 217.39%
Spark Therapeutics is a pharmaceutical company that is implementing adeno-associated viral gene therapy to create solutions to treat genetic diseases. The treatment is slated for neurodegenerative diseases, hemophilia, retinal diseases, and other inherited diseases. At the end of trading June 7, Sparks Therapeutics (NASDAQ: ONCE) was selling at $109.35.
#7: Shake Shack
IPO offering price: $21
Closing price at end of first day: $45.90
Share price increase on IPO's first day: 218.57%
Shake Shack is a New York City-based hamburger and hot dog chain that has grown from a single hot dog cart in 2004 to over 249 locations in America and abroad. A boutique burger chain, Shake Shack prices are higher than comparable burger joints, but fans would argue that they are worth it. At the end of trading June 7, Shake Shack (NYSE: SHAK) was selling at $63.68.
#6: Habit Restaurants
IPO offering price: $18
Closing price at end of first day: $39.54
Share price increase on IPO's first day: 219.67%
Habit Restaurants is the holding company for the Habit Burger Grill, an Irvine, Calif.-based charbroiled hamburger chain. Based largely in California, the Habit Burger was named the best burger in 2014 by Consumers Report. While not as well-known as Shake Shack, Habit Burger Grill has a comparable number of restaurants, with plans to expand. Unlike Shake Shack, Habit Burger Grill is open to franchising. At the end of trading June 7, Habit Restaurants (NASDAQ: HABT) was selling at $10.44.
#5: Qutoutiao
IPO offering price: $7
Closing price at end of first day: $15.97
Share price increase on IPO's first day: 228.14%
Qutoutiao—which translates from Chinese to “fun headlines”—is a mobile content aggregate. The company uses artificial intelligence to deliver customized article and short videos feeds based on users' profiles and preferences. At the end of trading June 7, Qutoutiao (NASDAQ: QTT) was selling at $4.39.
#4: Nutanix
IPO offering price: $16
Closing price at end of first day: $37
Share price increase on IPO's first day: 231.25%
Nutanix is a cloud-based service provider that offers software-defined storage and distributed computing solutions. The company allows enterprise clients to run applications at any scale without having to invest resources to expand its server infrastructure. At the end of trading June 7, Nutanix (NASDAQ: NTNX) was selling at $28.02.
#3: Aduro BioTech
IPO offering price: $17
Closing price at end of first day: $42
Share price increase on IPO's first day: 247.06%
Aduro BioTech is a pharmaceutical company creating and commercializing immunotherapies for persistent diseases, like cancer. The company seeks to do this by creating solutions that target and attack cancerous tumors. At the end of trading June 7, Aduro BioTech (NASDAQ: ADRO) was selling at $1.74.
#2: Beyond Meat
IPO offering price: $25
Closing price at end of first day: $65.75
Share price increase on IPO's first day: 263%
Beyond Meat is a food manufacturer that produces plant-based alternatives to beef, pork sausage, and chicken. The product is made of pea protein, mung bean protein, coconut oil, potato starch, apple extract, and other ingredients, and is pressure-steamed and extruded to create a meat-like texture and flavor. The company, however, is facing stiff competition from Impossible Foods, whose plant-based Impossible Burger is currently being test marketed by Burger King and has been included on the menus of over 5,000 restaurants—including all White Castle locations—in the United States. At the end of trading June 7, Beyond Meat (NASDAQ: BYND) was selling at $138.65.
#1: Seres Therapeutics
IPO offering price: $18
Closing price at end of first day: $51.40
Share price increase on IPO's first day: 285.56%
Seres Therapeutics is a pharmaceutical company that seeks to create a new class of medicine using live bacteria. These medicines seek to address deficiencies in the microbiome known as dysbiosis. The company in the last five years to have the best first-day return on its IPO, Seres Therapeutics (NASDAQ: MCRB), as of the end of trading June 7, was selling at $3.25.
