The number of initial public offerings jumped 52% this year vs. last, driven by successful IPOs from biotech and technology companies and the return of Chinese issuers.
There were 160 IPOs in 2017, compared with 105 in 2016. Proceeds nearly doubled to $36 billion, according to Renaissance Capital, which manages IPO-focused exchange traded funds.
Top-performing IPOs this year include biotech AnaptysBio (ANAB) and streaming media firm Roku (ROKU).
AnaptysBio is developing antibodies for inflammation and immuno-oncology. IPO shares priced at 15 and began trading in January. Shares of AnaptysBio doubled on Oct. 10 following the announcement of successful tests of its eczema drug. AnaptysBio shares rose 1.4% to 99.98 on the stock market today. Earlier in the session, AnaptysBio notched a record high of 100.54.
Roku soared 68% on its first day of trading on Sept. 28. The company makes hardware and software for accessing internet video services like Netflix (NFLX), Hulu and Amazon.com‘s (AMZN) Prime Video. Roku shares reached record highs in November, following a strong third-quarter earnings report. Roku priced its IPO at 14. On Tuesday, Roku shares surged 6.3% to 54.86.
IBD’S TAKE: The biggest stock market winners typically make their major price moves within a few months or years of their initial public offering. So it pays to identify and track companies that are getting ready to go or have recently gone public. Learn more at IBD’s IPO page. IBD also focuses on the best-performing IPOs of the past three years in its IPO Leaders column.
Renaissance said the 2017 IPO count should have been better than it was, given the underlying strength in the broader stock market. Holding back the amount of new issues were uncertainties over the massive tax overhaul and the disappointing debuts of meal-kit provider Blue Apron (APRN) and Snapchat owner Snap (SNAP), it said.
Blue Apron began trading on June 29, pricing share at 10, the low end of a downwardly revised range. Blue Apron shares ended the regular session Tuesday up 2.7% to 4.15. Its IPO came a week after Amazon announced its $13.7 billion deal to acquire Whole Foods Market, which raised concerns that Amazon will drive competitors out of the market.
Blue Apron operates as an e-commerce business that delivers fresh ingredients and recipes to make meals at home.
Snap held its IPO on March 2 with shares priced at 17. The shares popped 44% on the first day of trading and hit a record high of 29.44 the next day, before starting a downward slide. Snap shares fell 1% to 15.01 on Tuesday. Snap presented third-quarter results last month that missed estimates on all the key metrics.
Snapchat is a mobile, social-network messaging platform focused on videos and photos. It competes primarily against Facebook (FB)-owned Instagram, which is seeing strong user growth as Snapchat has sagged.
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View more information: https://www.investors.com/news/technology/u-s-ipo-market-makes-comeback-in-2017-as-roku-biotechs-thrive/