Reviewing 2016’s Top IPO Performers
Last year was one of the most dismal years for Initial Public Offering markets since the financial crisis of 2009. Renaissance Capital recorded the number of new releases for 2016 as only 119 – a drop from 170 the previous year and 275 in 2014. Consequently, there was a decrease in revenue generated. Having raised a total of $18.5 billion throughout the year, this translated to an amount smaller than ZTO Express’s revenue from its release which was pegged at $21.8 billion. Returns were also as disappointing for the new issuances overall. As of December 2016, new releases had made average gains of 0.6 percent. This figure was well below the S&P 500 Index.
However, despite the disappointing year for 2016, there have been companies that have gone public over last year and have flourished in the market gloom. These businesses have had their value increase significantly over the year on the stock exchange. We list some of them below.
- Acacia Communications
This company specializes in the production of cables and other telecommunication material that provide effective day to day communication services for its clients. The firm went public in May last year in an IPO that had it raise $103 million from pricing its shares at $23 each. Acacia Communications was traded under the ticker ACIA on the NYSE. From then, the stock had risen by 193 percent by the end of December 2016 to claim the top-performing slot under the IPO sector.
- AveXis Inc.
The Illinois-based company went public in February last year. The firm is listed under the healthcare sector of the NYSE and specializes in the production of medication for people with rare and life-threatening genetic conditions. Recently, it put up a possible cure for the treatment of Spinal Muscular Atrophy Type 1. However, the cure is still under clinical trial. The company went public in February last year, raising $100 million in its offering. By December 2016, the firm’s stock had increased in value by 169 percent.
- Novan Inc.
This firm is a pharmaceutical company that is involved in the dermatology sector of healthcare provision. In using its Nitric Oxide platform, the company develops products that can solve consumers’ skin problems. The company went public in the final quarter of last year, raising $47 million in its offering. It started trading on floors under the ticker NOVN. By the end of December, its share value had increased by 147 percent.
- Impinj Inc.
Impinj specializes in the production of radio frequency identification software and devices. As such, it is classified under the tech sector of listings. The Seattle-based company sells its products to a customer base mainly located in Asia, the Middle East and Africa. After a period of 16 years since it was founded, the company filed to go public and raised $67 million during its release. It appeared on trading floors under the ticker PI. From its time of issuance until the end of 2016, the company’s stock had experienced a rise in value totaling to 135 percent.
Another winner was Twilio Inc. which specializes in offering communication services over the cloud. It raised $150 million during its issuance and from its time of release to the end of 2016, had increased in value by 101 percent.