Initial Public Offerings (IPO) refers to the process of offering private shares of stocks to the public for the first time. Prior to “going public”, the initial valuation of the IPO is performed by an investment bank. First-day return of IPOs typically swing in a much wider range than normal publicly traded stocks. It’s because the price quickly moves towards its justified valuation judged by the public.
The above dashboard shares interesting facts about IPOs and their historical first-day performance since 2000.
- The historical first-day return of IPO has been in the range of -50% to 217%.
- Number of IPOs with positive first date return were 1,710, slightly lower than 1,820 negative returns.
- The volume of IPOs becomes lighter during recessions and even the first few years in the recovery periods.