The summer is often fairly light for initial public offerings, but things are different this time around. The market for new stocks remains robust, as seven companies pulled off IPOs last week.
And, at an average of about 25%, the returns were solid. The cybersecurity operator Rapid7 (RPD), for instance, saw its deal soar 58%, and ProNAi Therapeutics (DNAI), a developer of cancer drugs, posted a sizzling 81% return. In fact, there was only one bad deal among last week’s new stocks: Ooma (OOMA), a provider of cloud-based communications services, plunged a grueling 16%.
As for the upcoming week, do not expect as many fireworks. The market for new stocks will mostly come to an end within a couple weeks, as it typically does every year in late summer. Read