Analysis of 541 IPO Placings from 2011 to 2019. Part 1: Assassins and Rabbits; Multibaggers and Dogs.
408 IPOs from 2011 to 2019 were analysed quantitatively:
the median return was -17% with a 60:40 split of losers to winners over the time period.
This fits with published academic studies of IPO performance .
A deeper analysis of the numbers gives more insight on opportunities and the role of stop losses in converting trades into very profitable investments some which yielded several thousand percent returns.
Read the report here and download the full report with graphics
Analysis of 541 IPO Placings from 2011 to 2019. Part 2: "D" Listers, Frauds, Buy-Outs and Nomads
Part 1 of this series featured a quantitative analysis of 408 IPOs listed between 2011 and 2019. There were a further 133 IPOs which eluded the datamining processes used in Part 1. Part 2 takes a look at these 133 missing IPOs: almost half had delisted, one third were bought out while others had changed names, changed markets, gone back to private companies or were frauds. 25% of the 133 yielded a profit while 75% were a loss. These results amplify those from Part 1 and confirm the underperformance of IPOs and the risks of total loss of capital owing to delisting.
The costs and effect of being listed are often cited by C suite executives as exacerbating difficult trading conditions resulting in delisting. These are broken down further with insights on returns and the aggregate view of the total 541 along with observations on IPOs in general