Fairway (FWM) soared 33% in trading today as investors ate up the high-growth story, making the greater NYC area grocery store chain the 4th best debut of 2013. Fairway also represents the first IPO from the retail sector this year. Of note, four of the top 5 first day gainers year-to-date priced their offerings above the range (except Chimerix).
Fairway is one of only four public high-growth supermarket chains, all of which are capitalizing on increasing consumer interest in specialty and organic foods [e.g. Whole Foods (WFM) and The Fresh Market (TFM)]. The last supermarket IPO, National Grocers by Vitamin Cottage (NGVC), has traded up 58% since its July 2012 debut.
|Company||First Day Pop||IPO Return|
|Norwegian Cruise Line (NCLH)||30.5%||55.5%|