When a new start up company makes the decision to go public, they enter a process that is called an Initial Public Offering, or IPO for short. Going public means that the private company makes shares in its company available for sale to the public. An IPO represents the first opportunity for selling shares. The number of shares that are made available for sale can vary but they do it for several different reasons. It can help them to raise funds to clear debt or to expand the company, to acquire other companies with the funds raise or to use as an incentive to retain employees through a rewards system. Going public also increases the prestige of a company and may make them seem more attractive to investors and others who can benefit the company. If you’re considering investing, here are 10 lesser known IPOs that did very well in the last ten years for your consideration.
1. Annie’s – (BNNY)
Annie’s is an organic packaged food company. The company launched its IPO March 28, 2012 and experienced a remarkable jump in the price per share from $19 at the start of its first day to $35 by the close. The company is based out of Berkeley, California and offered 5 million shares in its IPO with a 70% climb by the middle of the day, selling 3.7 million of the 5 million shares offered raising $95 million in their IPO and doubling the value of the company from its previous $250 million to $500 million . Annie’s has been delisted from the NYSE with no information about the date that this action took place. Annie’s started out doing very well with an excellent IPO climb largely due to the fact that organic foods were a hot commodity on the market with so many who were concerned about healthy eating and nutrition. Companies such as Annie’s will see ups and downs in accordance with the most popular trends that the population is following. Organic foods are more expensive than ordinary non-specialty food products and this could account for the company’s delisting.
2. Duoyuan Global Water (DGW)
Duoyuan Golbal Water is based in China and provides water treatment and processing in Beijing, which is in high demand. Their IPO with the NYSE on June 24, 2009 was priced at $16 per share with a 40% jump the first day shares were made available. By January 4th, the company increased in value by 134% and closed with a stock price of $37,49 per share by the close of the day. Duoyuan Golbal Water was delisted on February 13, 2012. Duoyuan is another company which is no longer on the stock market with no opportunity to invest. It started out as one of the strongest IPOs for the 2009 year of going public and is no longer listed on the New York Stock Exchange.
3. Verisk Analytics (VRSK)
Verisk Analytics is a company that specializes in commercial insurance risk assessment and analytics for decision making. The IPO opened share availability on October 6, 2009 and on the first day of trading, the US company stock rose to $27.22 per share and saw a 23% increase upon its debut. 85.3 million shares were sold raising $1.9 billion, exceeding expectations. In a follow up, Verisk’s 90 day return was 35.68%. As of April 9, 2019, the price per share was $135.37 with a 52 week high of $136.99 per share and a low of $95.21 per share. Verisk Analytics stands as a good example of how getting in on the opening day of trading for a newly listed company can be profitable. Those who purchased shares in 2009 when they were just over $22 per share at the lowest point in the past year were still ahead on their investment and on the highest, exceeded the initial share price by more than four times the initial amount. Verisk was a good bet and its still going strong in its market niche.
4. Fabrinet (FN)
Fabrinet is based in the Cayman Islands with offices in New Jersey, China and Thailand and they manufacture optical communication system parts, industrial lasers and sensors. Their IPO date in June 25, 2010 with 85,000,000 shares sold at $10 per share on the opening day with $85 million raised and a valuation at IPO of $337.4 million. At the close of the IPO debut there were 33,743,709 shares outstanding. The opening price for shares was $10. In early trading, Fabrinet experienced gains of 8.3 percent in early trading on the NYSE. At the last spot check, Fabrinet stock prices were $56.2 per share with a 52 week high of $59.94 and a low of $27.29. Fabrinet is another company that came in with an IPO that was reasonably low at $10 per share, and those who invested in them at the low point nearly tripled their investment with the high for the past 52 weeks showing nearly 6 times the return on investment.
5. GoPro (GPRO)
GoPro is a company that manufactures and sells high definition cameras which are portable and used to record sporting and other life events. The US based company filed their IPO on March 31, 2014 and received an offering price of $24 per share with an opening share price of $31 per share that rose to $57.09 per share. At IPO, they experienced an 30% increase in share prices and raised $425 million in IPO funding with 123 million shares left outstanding with a valution of nearly $3 billion. GoPro has had its share of ups and downs, but it’s currently ranked as a bullish market and is currently showing a profit with stocks valued at $6.70 per share with a 52 week high of $7.60 per share and a low of $4 per share Go Pro investors took a hit over the past five years and those who bought in at $24 per share would see a peak of $31 per share that then hit a record of $57 per share, but over the past half decade, the prices of stock dropped to an all time low of $4 per share with some hope that it is rebounding with the prices rising to nearly $7 per share. It seems to be on an upswing currently.
6. Changyou.com (CYOU)
Changyou.com is a China based online game publisher who went public on April 2, 2009. The initial offering price of shares was $16 and as of January 4, 2010, closed at a price of $35.31 per share for an initial funding of $120 million and a 120.7% spike, with plans to expand their online gaming operations into the United States. Changyou experienced an increase in revenue in the third quarter after IPO of 26% with a valuation of $68.7 million. The online gaming industry is on the rise and ChangYou came in second place as one of the most valuable IPOs at the time of its filing. At last check, CYOU stock is currently priced at $16.44 with a 52 week high of $31.36 and a low of $12.68 per share.
7. Shake Shack (SHAK)
Shake Shack is a burger restaurant that attracts Gen X and Millennial crowds and it was one of the best performing new stocks for 2015, making its IPO in the later part of January of 2015 with an opening of $21 per share. Trading for the stock rose during the year to more than $75 per share showing an amazing 267% increase. Shake Shack hasn’t done bad since its initial public offering with shares currently valued at $58.77 along with a 52 week high of $70.12 and a low of $40.67. Shake Shack is one of those IPOs that has done very well since the company first went public in 2015 with a sharp increase the first year, which no doubt made investors happy to be a part of the action, and a leveling off the following year. Still, those who got in on the company early when the price of shares was $21 have more than doubled their investment and even at its lowest point, it was still nearly double the initial share price.
8. Kalvista Pharmaceuticals Inc (KALV)
Kalvista Pharmaceuticals is based out of Cambridge, Massachusetts and Salisbury, England. The company is research based and focuses on discovering and developing small molecule protease inhibitors on a commercial level. In their Initial Public Offering, 4 Million shares of common stock were made available at $17.00 per share. Kalvista opened on April 9, 2019 with a stock price of $28.88 per share. The 52 week high was $35.00 with a median price of $32.50 and a low of $25. The revenue growth for 2018 is 431.92% in increase over the previous year. This is one of the better performing IPOs that has done well since its debut and although there have been a few ups and downs, it’s been largely positive.
9. Spark Therapeutics (ONCE)
Spark Therapeutics is a Philadelphia, based company which works on treatments for rare diseases which usually operate under a one time administration. They concentrate on developing treatments for retinal disease occurring due to genetic inheritance. The company went public and at their initial public offering, achieved a price of $23 per share for the 7 million shares that were sold. The total that they brought in at their debut was $161 million. Spark Therapeutics had an earnings growth of 72.35% over the past year with a revenue growth of 436.52%. As of April 9, 2019, the price per share is $112.70. The 52 week high per share was $115.00 with a median price of $114.50 and a low of $47.00. Spark Therapeutics has delivered excellent performance from their IPO shares bringing in $23 per share and the price now at a low of $47 and the current at $114.50.
10. Aduro Biotech (ADRO)
Aduro Biotech, Inc is a company which works on developing technology platforms for encouraging the immune system to generate a response against cancer through engineering of compounds which illicit this response through research, development and clinical trials of new treatments discovered. Their IPO debuted with seven million shares of common stock available with sales at $17 per share on April 15, 2015. Aduro Biotech had a low period and a leveling off which is not uncommon with biotech institutions. Those who bought in while the stock was $17 experienced a loss, but after the leveling off period, the company’s price per share as of April 9 2019 is $4.01 per share with a 52 week high of $10 a median of $7 per share and a low of $4. This is an example of an IPO which did well at first with an increase of 88.25% then underwent a series of declines and lows.