The Hottest IPOs of 2013
5. Foundation Medicine
> First day increase: 96.3%
> Market cap: $908.4 million
> Past two quarters revenue: $11.1 million
> Past two quarters income: -$17.5 million
Unlike many other biotechs, Foundation Medicine Inc. (NASDAQ: FMI) already is generating revenues. Its platform analyzes tumor tissue samples for various cancers to better focus treatment. Foundation Medicine’s IPO was priced at $18.00 per share for its trading debut on September 25. Shares closed up more than 96% over the offering price on the first day, at $35.35. The company’ shares climbed as high as $40, but as of Friday’s close, shares changed hands for less than $34.
> First day increase: 102%
> Market cap: $1.09 Billion
> Past two quarters revenue: $48.2 million
> Past two quarters income: -$15.2 million
Benefitfocus Inc. (NASDAQ: BNFT) priced at $26.50 a share for its trading debut on September 18 and closed up on its first day roughly 102% above its offering price, at $53.55. Trading volume has since fallen, and the stock is down to less than $45 in recent trading. Benefitfocus offers a cloud-based insurance benefits management platform that serves consumers, employers and insurance carriers.
3. Noodles & Company
> First day increase: 104%
> Market cap: $1.28 billion
> Last two quarters revenue: $170.5 million
> Last two quarters income: +$992,000
Noodles & Co. (NASDAQ: NDLS) is one of the biggest restaurant IPOs in recent years. It went public on June 28 at $18 per share, but shares opened at $32 and ended up closing even higher for a total 104% first-day gain over its offering price. Shares continued to climb in their first week of trading to more than $50. Since then, shares have declined to settle at about $43 in recent trading.
> First day increase: 119%
> Market cap: $861.8 million
> Past two quarters revenue: $146.9 million
> Past two quarters income: -$7.5 million
Popular sandwich chain Potbelly Corp. (NASDAQ: PBPB) went public on Friday, October 4, and finished the day 120% above its offering price. Demand from investors was high even before the IPO. Potbelly’s underwriters initially planned to offer 7.5 million shares for between $9 and $11, but the offering price on all 7.5 million shares eventually was raised to $14. As of the first half of 2013, Potbelly posted an operating profit of $4.9 million. However, the bottom line for shareholders still amounted to a $7.5 million loss.
1. Sprouts Farmers Market
> First day increase: 122.8%
> Market Cap: $7.05 Billion
> Past two quarters revenue: $1.2 billion
> Past two quarters income: +$30.6 million
Sprouts Farmers Market Inc. (NASDAQ: SFM) has enjoyed the organic and natural foods craze. Its August 1 IPO was priced at $18 per share, and it only got better from there. Shares opened at $35 and closed up at $40.11 for a first day gain over the offering price of nearly 123%. Shares are even higher now with the stock closing Friday above $48.