The 21 IPOs this year that have raised 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 (HCM). Top-performers are fast-growing tech companies Twilio (TWLO; +172%) and Acacia Communications (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 (AVXS; +97%) and Editas Medicine (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% |
