Market Overview

2016 Has Been A Tough Year To Go Public

Share:
2016 Has Been A Tough Year To Go Public

Gary Kaltbaum, an investment advisor, was a guest on Benzinga's PreMarket Prep Monday to talk about many topics that interest investors, including the state of the IPO market in 2016.

Kaltbaum said he keeps a watch-list of up to 70 companies new to the stock market and said that they are "all getting creamed." He added that the few successful IPO launches, including Acacia Communications, Inc. (NASDAQ: ACIA) and Twilio Inc (NYSE: TWLO) are now "crashing."

From Winner To Loser

Kaltbaum raised a very valid point. Acacia's stock opened for trading back in May above its IPO price of $23 and soared above $30 per share in its first day of trading. The stock's momentum carried over for months and hit an all-time high of $128.73 in early September. The stock has since lost momentum and now stands at around the $70 per share mark.

Similarly, Acacia priced its IPO at $15 per share, and after its first day of trading in late June, the stock closed at $28.79. Within a few weeks, shares hit an all-time high of $70.96 before giving up most of the gains and is now trading at around $36 per share.

There Are Others

According to Renaissance Capital, 10 of the past 19 IPOs are now trading below issue price.

Some of the more notable decliners include China's second-largest delivery company, ZTO Express Inc. (NYSE: ZTO), which lost 15 percent on its opening day and and is now trading at nearly $3 below its initial pricing of $19.50.

Myovant Sciences Ltd. (NYSE: MYOV) was seen trading at $12.08 on Tuesday, down notably from its IPO pricing of $15 per share last Thursday.

Blackline, Inc. (NASDAQ: BL) priced its IPO at $17 per share but opened for trading last Friday at $24.52. By Tuesday shares are already drifting lower and was last seen trading at $22.59.

In fact, most of the IPOs from last week are underwhelming and trading in the red.

 

Related Articles (ACIA + BL)

View Comments and Join the Discussion!

Posted-In: Benzinga PreMarket Prep Gary Kaltbaum IPONews IPOs Movers Trading Ideas Interview Best of Benzinga

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com