Underwriters can grab a breather now.
The seasonal lull that kicks in for new offerings is under way, and we're unlikely to see a fresh IPO hit the market until next month. There's no problem. It's just the way things go this time of year.
However, the climate is encouraging if we go by last few companies to go public this summer. Six of the past seven debutantes have gone on to post double-digit-percentage gains. The lone exception is perhaps the most notable: Manchester United
The lack of shareholder control, the fickle nature of sport franchises, and the fact that revenue declined 5% in the team's latest season despite a 5% uptick in operating costs have kept the strikers out of the net on this one.
Thankfully, all six of the other recent IPOs are scoring these days.
Company |
IPO |
8/17/12 |
Gain |
---|---|---|---|
Hi-Crush Partners |
$17 |
$19.49 |
15% |
Manchester United |
$14 |
$13.42 |
(4%) |
Performant Financial |
$9 |
$10.95 |
22% |
Bloomin' Brands |
$11 |
$13.06 |
19% |
Peregrine Semicondutor |
$14 |
$15.80 |
13% |
Globus Medical |
$12 |
$14.35 |
20% |
Eloqua |
$11.50 |
$13.68 |
19% |
Source: Wall Street Journal.
It's a well-rounded assortment of companies that have gone public.
True to its name, Hi-Crush mines and processes raw sands that are used in hydraulic fracturing operations. Performant's a delinquent debt collector. Bloomin' Brands is the parent company of the popular Outback Steakhouse chain of restaurants.
Peregrine sells radio frequency integrated circuits that are based on UltraCMOS technology. Globus Medical makes medical devices used in spine disorders. Eloqua is a cloud-based provider of enterprise software.
However, the one thing that they all have in common -- outside of Manchester United -- is that they are winners, for now.
Investors will remember this strong winning streak when the IPO pipeline begins gushing again in a few weeks.
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