Three out of Four IPOs Traded This Week Post Strong Performance

Includes: ACOM, DYP, H, STRI
by: Renaissance Capital IPO Research
Out of the four newly public companies that began trading this week, three have posted strong results. (NASDAQ:ACOM), a popular website that provides family history information for a subscription-based fee, raised $100 million by offering 7.4 million shares at $13.50, within the expected $12.50 to $14.50 range. The NASDAQ stock was up an impressive 12% on its first day of trading on Thursday and has since traded down approximately 6% in the aftermarket, remaining positive at 6%.

Global brand Hyatt Hotels (NYSE:H) also began trading yesterday, pricing its 38 million shares at $25.00 (within the expected $23.00 to $26.00 range) and raising $950 million. The NYSE stock posted a first day return of 12%, overcoming concerns regarding the state of the hotel industry and feuding among members of the Pritzker family, which holds 85% of Hyatt stock.

The two debuts were followed by STR Holdings (NYSE:STRI) and Duoyuan Printing (NYSE:DYP), both of which began trading today. STR Holdings, which provides solar module encapsulants and quality assurance services for consumer products, offered its 12.3 million shares at $10.00, below its $11.00 to $13.00 (revised from $13.00 to $15.00) range. The NYSE stock has since risen to $10.78 (as of 1:15pm EST).

In comparison, Duoyuan Printing is down approximately 45 cents (5.3%) from its IPO price of $8.50, on the low end of its proposed range of $8.50 to $10.50. The offset printing equipment offered 6.5 million shares and raised $55 million.

Aviv REIT (AVI) and PlainsCapital (PCB), which were expected to trade on Wednesday and Thursday of this week, respectively, both postponed their deals.