IPO Madness 2013: Round One Recap And The Week Ahead

by: Renaissance Capital IPO Research

With many of the IPOs producing slam-dunk returns in 2013, Renaissance Capital would like to present the inaugural IPO Madness. To qualify, a company had to go public in 2013 and complete its listing by March 22. Whichever stock has the greater weekly return will survive to fight in another round until there is only one IPO left standing. We will publish recaps and previews of the matchups each week, so make sure to check on how your favorite IPOs do throughout the tournament. Check out the round one recaps and the round two matchups below.

View bracket, first round matchup previews and team capsules.

NYSE Region

Starwood-Backed homebuilder TRI Pointe Homes (NYSE:TPH) and equities-focused investment manager Artisan Partners Asset Management (NYSE:APAM) advanced to the second round. With a 3.3% return, TRI Pointe Homes advanced after outperforming Zoetis (NYSE:ZTS) after the Pfizer spinoff ended the week up just 0.8%. Artisan Partners Asset Management (4.2%) defeated petroleum refining limited partnership CVR Refining (NYSE:CVRR), which posted a 3.2% return for the week, thanks to a late Thursday surge.

Private Equity Region

Thomas H. Lee-backed conferencing and call center West Corporation (NASDAQ:WSTC) and Madison Dearborn-backed wood products manufacturer Boise Cascade Company (NYSE:BCC) advanced to the next round. West Corporation (+9.9%, the best performing IPO in the bracket last week) continued to rise in the week after its market debut, beating the third best performing 2013 IPO Norwegian Cruise Line (NASDAQ:NCLH), which fell -1.8% last week. With a return of 3.2%, Boise Cascade Company topped worksite childcare provider Bright Horizons Family Solutions (NYSE:BFAM), which turned in a -3.0% return and was one of five companies in the bracket to post negative returns for the week.


Cardiovascular testing provider Liposcience (NASDAQ:LPDX) and 3D printing machine provider ExOne (NASDAQ:XONE) advanced to the Elite Eight. With a 4.0% return last week, Liposcience defeated data center REIT CyrusOne (NASDAQ:CONE), down -0.5%, after reporting positive fourth quarter results on Wednesday. However, optimism surrounding Liposcience’s 4Q results appears to be short lived as the stock is down roughly -7% today. ExOne (+4.7%), which also reported strong results and offered a bullish outlook, surged on Thursday to surpass medical insurance provider Health Insurance Innovations (NASDAQ:HIIQ), which also finished up 4.7%. HIIQ lost by 0.04% and was the best performing IPO last week not to advance.

Venture Capital Region

Revenue management software provider Model N (NYSE:MODN) and money transfer company XOOM (NASDAQ:XOOM) were the final two companies to advance to the next round. Model N (+7.4%) outshined cloud-based ad management platform Marin Software (NYSE:MRIN), up 1.0%, while Xoom (-1.3%) ousted smart grid products provider Silver Spring Networks (NYSE:SSNI), which closed down -13.8% and was the worst performing IPO in the bracket.

Second Round Matchups:

NYSE Region: #4 TRI Pointe Homes (TPH), 18.5% return since IPO, vs. #3 Artisan Partners Asset Management (APAM), 31.5% return since IPO.

Private Equity Region: #4 West Corporation (WSTC), -4.1% return since IPO vs. #2 Boise Cascade Company (BCC), 61.6% return since IPO.

NASDAQ Region: #4 Liposcience (LPDX), 16.8% return since IPO, vs. #2 ExOne (XONE), 86.1% return since IPO.

Venture Capital Region: #1 Model N (MODN), 27.9% return since IPO vs. #2 XOOM (XOOM), 42.8% return since IPO.