Sprouts Farmers Market (SFM), which operates over 160 natural and organic grocery stores in eight southwestern states, soared nearly 123% in its market debut on Thursday, beating out Noodles & Company (NDLS) for the best first-day gain of 2013. The company raised $333 million after pricing well above its initial price range. Sprouts' opening day represents the best first-day return for a US IPO since Qihoo 360 Technology (QIHU) gained 134% on March 30, 2011 and marks the first US-based company to gain over 120% since NYMEX went public in November 2006. Sprouts is the fourth natural grocer to go public in the last four years, following the successful IPOs of Fairway Markets (FWM; up 92% from its IPO price), Natural Grocers (NGVC; 139%) and The Fresh Market (TFM; 145%).
| Top Five First-Day Returns Since 2011 | |||||
|---|---|---|---|---|---|
| Company | Ticker | Business | Deal Size ($mm) |
First-Day Return |
Total Return |
| Qihoo 360 Technology | QIHU | Chinese internet security products | $176 | 134% | 349% |
| Sprouts Farmers Market | SFM | Value-priced natural grocer | $333 | 123% | 123% |
| LNKD | Online professional network | $353 | 109% | 353% | |
| Splunk | SPLK | Data analysis software | $230 | 109% | 194% |
| Noodles & Company | NDLS | Fast-casual restaurant chain | $96 | 104% | 141% |
