The first technology IPO of the year also posted this year's best first-day gain. Care.com (CRCM), the largest online marketplace for family care, is the latest in a string of successful tech IPOs, with the previous five (NMBL, ATHM, WBAI, GOMO, ZU) posting an average return of 110%. In fact, since November, of the nine other tech companies to go public, all but one is trading 70% above its IPO price.
However, IPOs in general have not fared as well this year. Excluding Care.com, the average first-day return has been a relatively weak 3%. Outside of Care, only one IPO in 2013 (GlycoMimetics (GLYC)) managed to hit the average long-term first-day return of 11-13%. Especially impressive is Care.com's performance during the broad market sell-off of the last two days, which saw the stocks of many high-growth / internet names take a hit. Care.com raised $91 million on Thursday after pricing at $17 with an initial price range of $14 - $16.
|Initial Public Offerings of 2014|
|Care.com||CRCM||Online family care marketplace||$91||43%||43%|
|Cypress Energy Partners LP||CELP||Energy Co. inspection services||$75||7%||15%|
|Santander Consumer USA||SC||Subprime auto loans||$1,800||5%||1%|
|Rice Energy||RICE||Natural gas E&P||$924||4%||4%|
|RSP Permian||RSPP||Oil and gas E&P||$390||3%||3%|
|CHC Group||HELI||Helicopters for oil/gas industry||$310||-2%||-5%|
|EP Energy||EPE||Oil and gas E&P||$704||-10%||-9%|
Disclosure: No positions