Skip to main content
MENU
Subscribe
  • Subscribe
  • Account
  • LOGIN
  • Topics
    • Alternatives
    • Consultants
    • Coronavirus
    • Courts
    • Defined Contribution
    • ESG
    • ETFs
    • Hedge Funds
    • Industry Voices
    • Investing
    • Money Management
    • Opinion
    • Partner Content
    • Pension Funds
    • Private Equity
    • Real Estate
    • Russia-Ukraine War
    • SECURE Act 2.0
    • Special Reports
    • White Papers
  • Rankings & Awards
    • 1,000 Largest Retirement Plans
    • Top-Performing Managers
    • Largest Money Managers
    • DC Money Managers
    • DC Record Keepers
    • Largest Hedge Fund Managers
    • World's Largest Retirement Funds
    • Best Places to Work in Money Management
    • Excellence & Innovation Awards
    • Eddy Awards
  • ETFs
    • Latest ETF News
    • Fund Screener
    • Education Center
    • Equities
    • Fixed Income
    • Commodities
    • Actively Managed
    • Alternatives
    • ESG Rated
  • ESG
    • Latest ESG News
    • The Institutional Investor’s Guide to ESG Investing
    • Climate Change: The Inescapable Opportunity
    • Impact Investing
    • 2022 ESG Investing Conference
    • ESG Rated ETFs
  • Defined Contribution
    • Latest DC News
    • DC Money Manager Rankings
    • DC Record Keeper Rankings
    • Innovations in DC
    • Trends in DC: Focus on Retirement Income
    • 2022 Defined Contribution East Conference
    • 2022 DC Investment Lineup Conference
  • Searches & Hires
    • Latest Searches & Hires News
    • Searches & Hires Database
    • RFPs
  • Performance Data
    • P&I Research Center
    • Earnings Tracker
    • Endowment Returns Tracker
    • Corporate Pension Contribution Tracker
    • Pension Fund Returns Tracker
    • Pension Risk Transfer Database
    • Future of Investments Research Series
    • Charts & Infographics
    • Polls
  • Careers
  • Events
    • View All Conferences
    • View All Webinars
    • 2022 Innovation Investing Conference
    • 2022 Defined Contribution East Conference
    • 2022 ESG Investing Conference
    • 2022 DC Investment Lineup Conference
    • 2022 Alternatives Investing Conference
Breadcrumb
  1. Home
  2. INVESTING & PORTFOLIO STRATEGIES
September 18, 2013 01:00 AM

New filings show IPO market's come back

Chrysler, Hilton plan to soon follow Twitter; 'Facebook effect is finally wearing off'

Jeff Benjamin , InvestmentNews
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print
    Bloomberg

    Twitter Inc.'s disclosure last week that it had filed to go public was big news not because it was unexpected but because it is the latest indication of a resurgence in the IPO market.

    By the time of the initial public offering, likely in November, it will be 18 months since the now infamous Facebook Inc. IPO, another hugely popular social-media business that went public with much fanfare and then proceeded to watch its stock price fall off a cliff.

    Facebook's stock, which has gained nearly 60% since the start of the year, only started trading above its May 2012 IPO price of $42 a few weeks ago.

    The takeaway, according to market watchers, is that the IPO market is back with a vengeance.

    “In terms of performance, this has been one of the strongest years since 1995 or 1996,” said Josef Schuster, manager of the First Trust U.S. IPO Index Fund.

    According to IPO tracking firm Renaissance Capital LLC, there have already been 174 IPO filings this year, compared with 141 for all of 2012. So far this year, 132 companies have actually gone public, compared with 128 for all of 2012.

    Renaissance Capital reports that the average return of the 132 IPOs completed so far this year is 34%.

    As Mr. Schuster pointed out, there are numerous examples of strong performance from recent IPOs.



    • Pharmaceutical research firm AbbVie Inc., has seen its stock price climb nearly 38% since its January IPO.

    • Shutterstock Inc., which operates an online marketplace for digital imagery, has gained more than 250% since it went public 11 months ago.

    • Biopharmaceutical company Stemline Therapeutics Inc. (STML), has seen its stock price climb nearly 265% since its January IPO.

    “The IPO market has produced strong returns for investors recently, and this bodes well for companies seeking to go public, including some of the major names in the pipeline,” said Kathleen Smith, Renaissance Capital principal.

    In addition to Twitter, such marquee names as Chrysler Group LLC and Hilton Worldwide Inc. have recently filed to go public.

    “The IPO market is picking up partly because enough time has elapsed since the PR catastrophe of the Facebook IPO,” said Ryan Issakainen, exchange-traded fund strategist at First Trust Advisors L.P.

    “This is a good time for companies to go public because the market has performed well, and you're getting better valuations, and there's some pent-up demand for new IPOs,” he said. “The Facebook effect is finally wearing off.”

    Twitter, which filed confidentially with the Securities and Exchange Commission as a way to keep its financial data private for now, aims to walk the fine line of whipping up enough enthusiasm for the stock but also pricing it to have some upside after the IPO.

    “Twitter is a hot issue. The stock is going to fly off the shelves no matter what because it's a good growth story,” Mr. Schuster said.

    “Across the spectrum of recent IPOs, companies have had solid earnings and that leads to deal flow, and so far it doesn't look like the momentum is fading,” he said.

    Related Articles
    Facebook rebound is benefiting the patient later-stage investors
    Nasdaq falter strands private equity-backed IPO
    Blackstone's Hilton IPO poised be third-largest of 2013
    Jobs Act IPOs need careful eye, some say
    Recommended for You
    More funds testing water on crypto-related assets
    More funds testing water on crypto-related assets
    Money managers eager to make leap to opportunity zone investing
    Money managers eager to make leap to opportunity zone investing
    Index investing: Not as passive as you might think
    Index investing: Not as passive as you might think
    OCIO, Anchor in Rough Seas
    Sponsored Content: OCIO, Anchor in Rough Seas

    Reader Poll

    May 23, 2022
    SEE MORE POLLS >
    Sponsored
    White Papers
    Crossroads: Politics, Inflation, & Bonds
    Credit Indices: Closing the Fixed Income Evolutionary Gap
    Forever in Style: Benchmarking with the Morningstar® Broad Style Indexes℠
    Q2 2022 Credit Outlook: Carry On
    Leverage does not equal risk
    Is there a mid-cap gap in your DC plan?
    View More
    Sponsored Content
    Partner Content
    The Industrialization of ESG Investment
    For institutional investors, ETFs can make meeting liquidity needs easier
    Gold: the most effective commodity investment
    2021 Investment Outlook | Investing Beyond the Pandemic: A Reset for Portfolios
    Ten ways retirement plan professionals add value to plan sponsors
    Gold: an efficient hedge
    View More
    E-MAIL NEWSLETTERS

    Sign up and get the best of News delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    Subscribe Today
    May 23, 2022 page one

    Get access to the news, research and analysis of events affecting the retirement and institutional money management businesses from a worldwide network of reporters and editors.

    Subscribe
    Connect With Us
    • RSS
    • Twitter
    • Facebook
    • LinkedIn

    Our Mission

    To consistently deliver news, research and analysis to the executives who manage the flow of funds in the institutional investment market.

    About Us

    Main Office
    685 Third Avenue
    Tenth Floor
    New York, NY 10017-4036

    Chicago Office
    130 E. Randolph St.
    Suite 3200
    Chicago, IL 60601

    Contact Us

    Careers at Crain

    About Pensions & Investments

     

    Advertising
    • Media Kit
    • P&I Content Solutions
    • P&I Careers | Post a Job
    • Reprints & Permissions
    Resources
    • Subscribe
    • Newsletters
    • FAQ
    • P&I Research Center
    • Site map
    • Staff Directory
    Legal
    • Privacy Policy
    • Terms and Conditions
    • Privacy Request
    Pensions & Investments
    Copyright © 1996-2022. Crain Communications, Inc. All Rights Reserved.
    • Topics
      • Alternatives
      • Consultants
      • Coronavirus
      • Courts
      • Defined Contribution
      • ESG
      • ETFs
      • Hedge Funds
      • Industry Voices
      • Investing
      • Money Management
      • Opinion
      • Partner Content
      • Pension Funds
      • Private Equity
      • Real Estate
      • Russia-Ukraine War
      • SECURE Act 2.0
      • Special Reports
      • White Papers
    • Rankings & Awards
      • 1,000 Largest Retirement Plans
      • Top-Performing Managers
      • Largest Money Managers
      • DC Money Managers
      • DC Record Keepers
      • Largest Hedge Fund Managers
      • World's Largest Retirement Funds
      • Best Places to Work in Money Management
      • Excellence & Innovation Awards
      • Eddy Awards
    • ETFs
      • Latest ETF News
      • Fund Screener
      • Education Center
      • Equities
      • Fixed Income
      • Commodities
      • Actively Managed
      • Alternatives
      • ESG Rated
    • ESG
      • Latest ESG News
      • The Institutional Investor’s Guide to ESG Investing
      • Climate Change: The Inescapable Opportunity
      • Impact Investing
      • 2022 ESG Investing Conference
      • ESG Rated ETFs
    • Defined Contribution
      • Latest DC News
      • DC Money Manager Rankings
      • DC Record Keeper Rankings
      • Innovations in DC
      • Trends in DC: Focus on Retirement Income
      • 2022 Defined Contribution East Conference
      • 2022 DC Investment Lineup Conference
    • Searches & Hires
      • Latest Searches & Hires News
      • Searches & Hires Database
      • RFPs
    • Performance Data
      • P&I Research Center
      • Earnings Tracker
      • Endowment Returns Tracker
      • Corporate Pension Contribution Tracker
      • Pension Fund Returns Tracker
      • Pension Risk Transfer Database
      • Future of Investments Research Series
      • Charts & Infographics
      • Polls
    • Careers
    • Events
      • View All Conferences
      • View All Webinars
      • 2022 Innovation Investing Conference
      • 2022 Defined Contribution East Conference
      • 2022 ESG Investing Conference
      • 2022 DC Investment Lineup Conference
      • 2022 Alternatives Investing Conference