Q1 in Review: The Top 3 IPO Trends

Mar 29, 2013, 9:45 am EDT
Q1 in Review: The Top 3 IPO Trends

It was a great quarter for IPOs … well … and for the market overall. The S&P 500 enjoyed a solid double-digit climb in the first three months of the year, while the Nasdaq wasn’t far behind with gains just over 8%.

In fact, a total of 29 companies hit the market during the start of the year and the average return — based on initial offering prices — was just under 20%. In fact, there were only five deals that posted losses, with the worst being KaloBios Pharmaceuticals (NASDAQ:KBIO). It’s dropped an ugly 25% or so.

For the most part, though, Q1 came with lots of good news. With that in mind, let’s take a look at three big themes for IPOs thus far. Read 

3 Ways to Juice Returns With IPOs

Mar 27, 2013, 1:37 pm EDT
3 Ways to Juice Returns With IPOs

We’ve seen some red-hot initial public offerings this year. 3-D printing machine maker ExOne (NASDAQ:XONE), for instance, has surged 76%, while online money transferring service Xoom (NASDAQ:XOOM) has zoomed up 44%.

Sure, these returns might not be on par with the giddy 1990s — when it was routine for IPOs to double or triple within months — but these offerings are still impressive enough to be sought-after by investors.

The problem: Most investors are shut out of IPO allocations. The shares are mostly for favored clients of the investment banks, leaving retail investors little choice but to make trades once shares actually hit the market — thus leaving them out of the big first-day pop. Read 

Zuck Is Stretching His Political Wings

Mar 27, 2013, 11:27 am EDT
Zuck Is Stretching His Political Wings

Facebook (NASDAQ:FB) already has turned into a powerful force in politics, so it should be no surprise that CEO Mark Zuckerberg wants to take things even further.

To this end, Zuckerberg reportedly is putting together an advocacy group that will focus on issues that are vitally important to the tech community, such as immigration and education reform. He hopes to raise $50 million for the effort, which should actually be fairly easy — Zuck can just pass the hat around to his wealthy Silicon Valley friends. LinkedIn’s (NYSE:LNKD) billionaire co-founder, Reid Hoffman, has already pledged millions.

Sure, Zuck’s political foray could ruffle some feathers, but ruffling feathers hasn’t exactly stopped him in the past. However, to help boost the odds of success, it looks like Zuckerberg will take a bipartisan approach. In the past year, he has hosted events with President Obama and Gov. Chris Christie. Read 

Look Out for Bausch & Lomb’s IPO

Mar 26, 2013, 2:36 pm EDT
Look Out for Bausch & Lomb’s IPO

Bausch & Lomb, developer of contact lenses and other eye-care products, is making another return to the public markets.

B&L was publicly traded from 1958 to 2007, when it went private in a $4.5 billion transaction sponsored by Warburg Pincus.

According to a report in the The New York Times, Warburg Pincus was actually looking to sell B&L back in December, but there were no bidders above the valuation of $10 billion. So, it looks like an IPO was the next best option, and last Friday, the company filed its S-1 with the Securities and Exchange Commission. Read 

Summly’s $30M Deal: Good for the Kid, But Not Yahoo

Mar 26, 2013, 2:26 pm EDT
Summly’s $30M Deal: Good for the Kid, But Not Yahoo

What might a modern-day version of The Graduate movie might be like? Instead of McGuire’s iconic line, “Plastics,” his one-word advice to the young Benjamin would definitely be “Mobile.”

Well, it seems 17-year-old Nick D’Aloisio — who just sold a company to Yahoo! (NASDAQ:YHOO) — got the message.

Two years ago, D’Aloisio launched a mobile startup, which led to the creation of the Summly app, which essentially condenses articles to about 400 characters. Along the way, he was able to raise $1.5 million, with investors including Zynga (NASDAQ:ZNGA) CEO Mark Pincus, Airbnb’s CEO Brian Chesky, Ashton Kutcher, Wendy Murdoch, Hong Kong billionaire Li Ka-shing and even Yoko Ono. Read 

Pinnacle Foods Cooks Up an IPO

Mar 25, 2013, 12:28 pm EDT
Pinnacle Foods Cooks Up an IPO

Last week was an action-packed one for IPOs. And except for a couple clunkers, the returns were fairly strong. Take a look at the returns from the original offering price: Company Ticker Return Five Oaks OAKS -3.3% Marin Software MRIN 10.5% West Corp. WSTC -7.5% Aviv REIT AVIV 14.9% Enanta Pharmaceuticals ENTA 20.4% Model N MODN 24.7% Tetraphase Pharmaceutical TTPH 0.1%

In all, the average return has been around 8.5%.

This week, though, things will be a bit slower. In fact, there is only one deal on the calendar: Pinnacle Foods (NYSE:PF). Read 

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