The single best source to begin a screen of US-listed IPOs is at Renaissance Capital. This website consolidates all US IPO data into one site, and gives you several good options of ranking IPOs by size, by date or by after-market returns.
Let's review the 2014 US IPO Market Review report, published on January 2, 2015. From this report, we can see that the IPO market in the US posted its highest number of offerings, at 275, since the year 2000, when 406 offerings began trading. Of these 275 IPOs last year, 102 were in the healthcare sector, capitalizing on the booming biotechnology revolutions underway, thanks to the dramatic fall in genomics and computing costs.
From page 5 of this report, you'll see that the average IPO at year-end finished up 121% from the offer price, mostly fgrom the first day. However, the average after-market return would have been 0% if not for biotech IPOs, which included none deals that gained 100% or more the first day. Page 6 of the report displays a chart of IPO returns by sector.
Page 7 of this report is where we will begin our screens. The table at the top of that page lists the Best-Performing US IPOs. As you can see, returns ranged from top-performing Radius Health (RDUS) at 386.4%, while the tenth best performer was TrueCar at 154.4%. Most of these moves occurred after the first-day pop. In Radius's case, the first day pop was just 0.1%. Investors paying attention had plenty of time to watch this stock perform and decided on an entry point.
For a look back at the first quarter of 2015, Renaissance has published a similar quarterly report. Page 6 of this report lists the top 10 returning IPOs, led by Spark Therapeutics (ONCE) at 237%!. Again, the biotech space is where a lot of IPO action continues.
In our next post, we'll delve further into how we create our screens of the IPO calendar.
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