Shares of Voxeljet doubled in the 3D printing stock’s initial public offering.
Voxeljet showed some weakness on the pricing of the IPO, as the 3D printing company issued 6.5 million shares at $13, which was the at the low end of the $13 to $15. But that hasn’t mattered much considering VJET is, once again, up a massive 100% in its debut.
The 3D printing company is the mastermind of Dr. Ingo Ederer, who started his career in the inkjet industry in the early 1990s … but soon realized that the technology could leveraged in manufacturing. So, he snagged over 50 patents for 3D printing.
To ramp his 3D printing business, Ederer then raised capital for VJET in 2003.
So far, things have been going smoothly for Voxeljet. VJET has expanded distribution to a broad array of industries like aerospace, film and entertainment, art and architecture, engineering and consumer product end markets. The 3D printing company also generates revenue from the sale of machines and consumables, as well as services. In fact, 60% of revenue came from services last year. The company’s global printer-installed base is 52.
From 2010 to 2012, revenue for VJET grew at a 35% compound rate, reaching $11.3 million. There was also a $277,000 profit last year.
While that may seem small, the market potential is not. According to this year’s Wohlers Report, global sales of 3D printing products and services is forecast to grow from $2.2 billion in 2012 to $6 billion by 2017.
No wonder investors haven’t lost their appetite for offerings of 3D printing stocks.
Tom Taulli runs the InvestorPlace blog IPO Playbook. He is also the author of High-Profit IPO Strategies, All About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.