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, of the nine other tech companies to go public during the past three months, all but one are trading 70% above their 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%. Only one other IPO in 2014 (GlycoMimetics) 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 - $16.
| Initial Public Offerings of 2014 | |||||
|---|---|---|---|---|---|
| Company | Ticker | Business | Deal Size ($mm) |
First-Day Return |
Total Return |
| Care.com | CRCM | Online family care marketplace | $91 | 43% | 43% |
| GlycoMimetics |
GLYC | Clinical-stage biotech | $56 | 13% | 18% |
| 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% |
