This morning's IPO of Solarwinds (SWI) opened up 20% higher than its original offering price of $12.50, so if you were lucky enough to get shares at the IPO price, you have made money. If you bought at the open, however, you're staring at a loss of nearly 10% before lunch. Who knows -- maybe people who bought at the open thought the company, as its name would suggest, was involved in alternative energy, and now they're unloading as they realize it's really a software company.
Anyways, while SWI has been disappointing in its first day of trading, IPO investing so far in 2009 has been profitable for investors. So far this year, IPOs are up an average of 21.7% from their IPO price. And even if they weren't lucky enough to get in at the IPO price, this year's IPOs are currently up an average of 2.5% from their first trade. The year's biggest winner has been Chinese ADR Changyou.com (CYOU), which is up 91% from its IPO price and 39% from the price where it opened for trading. CYOU is an online game developer that was spun off from Sohu.com (SOHU) and has been riding the coattails of Shanda Interactive (SNDA), which is up 68% year to date.
With SWI now out of the gate, focus will now shift to OpenTable.com (OPEN) which is also slated to price this week.
There are many companies with dream of making an IPO but there are some points which they have to consider before making such IPO's such as, they should win trust of the public, small technology companies fail to attract investor attention, don’t make an IPO in anticipation of success. For more details refer http://www.prime-targeting.com/companies-conduct-ipo-research-before-making-an-ipo/
Posted by: ipo research | August 17, 2009 at 01:49 AM