Bigger And Better: 2016 IPOs That Raised More Than $100 Million Are Up Over 30%

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Includes: ACIA, AVXS, EDIT, HCM, TWLO
by: Renaissance Capital IPO Research

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
Return
Avg. Aftermarket
Return
Avg. Total
Return
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%
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