Questioning the Performance of 2011 IPOs

Daniel Hom
on June 13, 2011

The IPO market can be deceiving. We have some thoughts about how we think the market is doing. But we'd really like to hear what you think the story of the IPO Market is using our stateful sharing feature.

If you look strictly at how much capital the market has raised, you could easily walk away believing that investor confidence is at an all-time high. Companies have raised $24.2b year-to-date, more than double the $9b raised in the first half of 2010. The overall market seems to be moving full steam ahead, but is that the whole story?

This vizin the Wall Street Journal, takes a deeper look at this year's IPOs and asks just that: How have companies that went public this year grown? We found that on average, industries tend to take off the first few days after going public, only to cool off the longer they are on the market. In some cases, they actually turn to losing market capitalization. There are also many companies that have grown compared with their offer price but have actually shrunk when compared with their first-day close. Even golden-stock LinkedIn falls to this fate, having shot up 62% from its offer price but unable to hold to its first-day-closing high (trading 23% lower).

The IPO story according to you

Join the conversation--how do you think the market is doing? If you spot a different angle to the story in the viz, you can share that specific view with us. First, make sure you have the view you want us to see, then click the 'Share' button and copy the link under 'Email'. Leave us a comment here (or in our IPO Dashboards blog) with the link, and everyone will be able to see the exact same view you're looking at as well.