Fast-growing organic and natural food company Annie's (BNNY) soared 89% in its market debut Wednesday, giving it the best first-day pop since LinkedIn in May 2011 (109% first day return). The company, known for its macaroni and cheese and cheddar bunnies, has benefited from increasing demand for healthy food options. The consumer brand has evidently also whetted investors' appetites, making it the fifth best performing IPO this year.
The US IPO market is off to a very good start in 2012, with 36 IPOs averaging a 35% return year-to-date vs. the S&P 500's 12% return. The FTSE Renaissance IPO Index is up 19%.
Vocera Communications (VCRA), which provides a mobile communications platform for hospitals and healthcare facilities, also posted an impressive 31% first day return Wednesday after pricing its IPO above the proposed range at $16. Subprime installment lender Regional Management (RM) closed up 10% on its first day.
