When a company goes public — especially in an emerging industry — it’s important to have a nice spike on the first day of trading. In a sense, this is a show of strength as well as a media event.
Here’s a look at some of the notable first-day performers for 2011: Company Return LinkedIn 109.4% Zillow 78.9% Groupon 30% Angie’s List 25%
Part of these pops came from investors’ excitement to juice up their portfolios with growth plays. But there has been another catalyst: Wall Street underwriters have generally issued small amounts of shares. In fact, for the companies in the table above, it was routine to float less than 10% of the outstanding shares. Read