2010 has had a very mixed fanfare when it comes to the IPO market. Investors have followed IPOs with a passion on and off since the 1900’s when technology, biotech and internet wonders reached the edge of imagination. Many of the 2010 IPOs have gone from hot to snot, and there are over 20 busted IPOs trading under their offering price. This year’s class of IPOs does actually have many winners with double-digit percentage gains even after the choppiness seen this week.
We are tracking gains so far in MakeMyTrip Ltd. (NASDAQ: MMYT), Fabrinet (NYSE: FN), Qlik Technologies, Inc. (NASDAQ: QLIK), Green Dot Corporation (NYSE: GDOT), AutoNavi Holdings Ltd. (NASDAQ: AMAP), RealD Inc. (NYSE: RLD), Oasis Petroleum Inc. (NYSE: OAS), and RealPage, Inc. (NYSE: RP).
We have outlined the performance and added color in on the operations so that there is some extra outlook possibility into the future.
MakeMyTrip Ltd. (NASDAQ: MMYT) just became the best IPO of 2010. It actually may have been the best IPO debut since 2007. The online travel agency based in India sold 5 million shares at $14.00 per share versus a $12.00 to $14.00 expected price range. That comes to $70 million raised, or $80.5 million raised in gross proceeds if you consider the shares that will have been sold in the overallotment option. Shares closed at $26.45 on the debut for an 88.9% gain. With shares down around $25.50, MakeMyTrip is now ‘only’ up 82%. Keep in mind that this one opened up at $22.00 on Thursday, so that should really be considered the real benchmark for everyone else that did not get IPO shares.
Fabrinet (NYSE: FN) came public at the end of June, in the middle of the selling fury, which may account for some of the ‘value’ despite the issue that it ran solidly over the last week and a half. The company is based in the Cayman Islands but has its facilities in the U.S., China, and Thailand. It provides foundry services to optical component, module, and subsystem original equipment manufacturers. Of the 8.5 million shares offered, 2,830,000 shares were sold by the company and the pricing was at $10.00. The interesting aspect here is that Fabrinet actually turned into a busted-IPO in late July and early August before a big swing upward in recent days. AT $14.40, Fabrinet is now up 44% from the IPO and up about 50% from the real post-IPO lows. Both Deutsche Bank and Stifel Nicolaus initiated the stock with Buy ratings early this month.
Qlik Technologies, Inc. (NASDAQ: QLIK) remains unheard of by most, but it remains one of the top IPOs of 2010 and was up about 50%. The company develops and sells software solutions for data analysis and reporting solutions. The price range was $8.50 to $9.50, yet its priced at $10.00 in mid-July. The 11.2 million shares did get its over-allotment option exercised, so underwriters sold some 12,880,000 shares after it was all said and done. At $14.98, we have a post-IPO trading range of $12.00 up to $16.04. At $14.35 today, Qlik is trading up 43.5% from its IPO price.
Green Dot Corporation (NYSE: GDOT) just had its first earnings report Thursday. The pre-paid credit company is proof that millions of Americans are no longer eligible on-the-grid in the credit economy. Shares have backed off a bit from highs, but at $46.40, the 4.6 million share IPO is up 29% from the $36.00IPO price versus a range set at $32.00 to $35.00. The lowest this ever saw on the IPO data was $41.13, so anything under $41.00 means any new buyers are thinking deal-parity has been breached. Trading volume in Green Dot has been very muted.
AutoNavi Holdings Ltd. (NASDAQ: AMAP) does personal navigation via digital map content and navigation and location-based solutions in China. This came public right before July 4 at $12.50, which was at the top of a $10.50 to $12.50 trading range. The IPO sale came to 9,918,750 ADRs after the overallotment was exercised by underwriters. At $15.85, shares are up about 27% and the post-IPO range is $12.62 to $16.96. Trading volume has been muted in this issue as well.
RealD Inc. (NYSE: RLD) owes much of its fame to “Avatar” for its 3D graphics systems. The mid-July IPO priced at $16.00, above the $13.00 to $15.00 range. The stock opened above $19 and sold off down to about $17.00 before a recent resurgence came back into the stock took it as high as $20.00. Even after a 3% drop today to $18.95 represents almost 20% gains from the IPO price.
Oasis Petroleum Inc. (NYSE: OAS) came public in mid-June. The one engages in the acquisition and development of oil and natural gas resources primarily in the Williston Basin. After a $13.00 to $14.00 range, the deal priced at $14.00. Shares rose initially and pulled back some, but the trend on Oasis treated it as one of the few watering holes in a desert as shares went as high as $18.74. At $17.95 today, the stock is up about 28% since mid-June and a post-IPO trading range of $13.88 to $18.74 exists.
RealPage, Inc. (NYSE: RP) may be too soon to judge considering that it just came public this week and there has not been enough to evaluate the company. It provides on-demand property management solutions to owners and managers of single-family and multi-family rental properties to manage marketing, pricing, screening, leasing, accounting, purchasing and other property operations. Of the 12.3 million shares sold at $11.00, 6 million shares were sold by the company. Shares opened at $13.00 and traded as high as $16.41 before a $14.52 close on its debut for a 32% gain. At $14.45 Friday, RealPage is still up over 30%.
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JON C. OGG
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