The 21 IPOs this year that have raised over $100 million have delivered investors an average return of 32%, including a first-day pop of 14% and an additional 14% in the aftermarket. Most notably, only one IPO in this group currently trades below issue, biotech Hutchison China MediTech (NASDAQ:HCM). Top-performers are fast-growing tech companies Twilio ((NYSE:TWLO); +172%) and Acacia Communications ((NASDAQ:ACIA); +157%).
Meanwhile, the 27 IPOs that have raised less than $100 million this year have traded up 7%, comprised of a 4% first-day pop and 4% aftermarket return. This group is led by its two largest deals, biotechs AveXis ((NASDAQ:AVXS); +97%) and Editas Medicine ((NASDAQ:EDIT); +69%).
The average return for 2016 IPOs is 19%, vastly outperforming broader indices such as the S&P 500 (+6.4% YTD) and the Nasdaq Composite (+1.8%).
|Larger 2016 IPOs Have Outperformed|
|As of 7/22/2016||Number of IPOs||Trading Above |
IPO Price (%)
|Avg. First-Day |
|Avg. Aftermarket |
|Avg. Total |
|IPOs with deal size > $100mm||21||20 (95%)||+14.4%||+14.1%||+32.1%|
|IPOs with deal size < $100mm||27||16 (59%)||+4.8%||+4.8%||+8.5%|
|Total IPOs||48||35 (75%)||+9.0%||+8.8%||+18.8%|