Initial Public Offering (IPO)

RECENT NEWS
The Economic Times  45 min ago  Comment 
HEM Securities has advised investors to subscribe to ARSS Infrastructure IPO.
The Economic Times  51 min ago  Comment 
The Economic Times  47 min ago  Comment 
Swastika Investmart has recommended investors to apply for ARSS Infrastructure IPO and expect a price target of Rs 525-575 in the medium term.
The Economic Times  2 hrs ago  Comment 
HDFC Securities is of the view that the initial public offering of Hathway Cables and Datacom is reasonably priced.
ABRN  2 hrs ago  Comment 
Following its listing on Inc. magazine?s 2009 tally of the fastest-growing private companies in the country, American Tire Distributors, Inc. plans to go public with a listing on the New York Stock Exchange.
Sydney Morning Herald  4 hrs ago  Comment 
Singapore Telecommunications says no decision had been made on a rumoured partial float of its wholly-owned subsidiary, Optus.
The Australian  6 hrs ago  Comment 
THE Gerard Lighting Company in Adelaide is looking to arrange either a trade sale or a public float in the June quarter of this year.
The Economic Times  6 hrs ago  Comment 
As turbulent stock markets threaten to delay the initial public offers (IPOs) of several cash-strapped real estate companies, private equity firms are sensing an opportunity to step in as an alternative source of funding for them.
Financial Times  Feb 8  Comment 
Market participants are now scaling back their expectations for Hong Kong and mainland China’s IPO market in 2010, predicting a year of volatility
Business Standard  Feb 8  Comment 
ARSS Infrastructure Projects Limited, a city-based infrastructure firm engaged in the construction of roads, bridges, highways, bridges and railway projects, expects to raise Rs 103 crore through its initial public offer (IPO).
Finance Asia  Feb 8  Comment 
The $327 million deal offers more evidence that demand for Hong Kong IPOs is waning. Earlier in the week, Chu Kong Pipe also priced at the bottom, while Sijia pulled its offering citing current market conditions.



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An initial public offering, or IPO, is the first sale of a corporation's common shares to investors on a public stock exchange. The main purpose of an IPO is to raise capital for the corporation. While IPOs are effective at raising capital, being listed on a stock exchange comes with heavy regulatory compliance and reporting requirements.

The term IPO only refers to the first public issuance of a company's shares. If a company later sells newly issued shares again to the market, it is called a seasoned equity offering. When a shareholder sells shares, it is called a secondary offering and the shareholder, not the company that originally issued the shares, retains the proceeds of the offering. These terms are often confused and only a company which issues shares can make a primary offering or IPO. Secondary offerings occur on the secondary market, where shareholders (not the issuing company) buy and sell shares from and to each other.

The IPO process starts when the corporation files a registration statement, according to the Securities Act of 1933, with the SEC. The SEC then investigates the registration statement and approves the full disclosure. The underwriter first issues a preliminary prospectus and then an official prospectus before or along with the stock offering. After SEC approval, the price and date of the IPO are decided.

Investing in an IPO is a risky and speculative investment. Only active traders, depending on their investment objectives and risk tolerance, should consider this type of investment.



IPO Calendar

IPOs in 2010

CompanyExchangeTickerIndustryOffer DateProposed Price RangeShares (in millions)IPO Price1st Day CloseLead Underwriters
Patriot Risk Management NYSEPMGInsuranceNA$8.00 - $8.0021.2NANAFBR Capital Markets
JinkoSolar Holding NYSEJKSEnergyNA$6.00 - $8.0010.6NANAGoldman Sachs
Graham Packaging NYSEGRMBasic MaterialsNA$14.00 - $16.0023.3NANACiti
Ironwood Pharmaceuticals NASDAQIRWDHealthcare2 Feb.$14.00 - $16.0016.7$11.25$11.71JP Morgan
Imperial Capital NYSEICGFinancial ServicesNA$15.00 - $17.006.7NANARenCap Securities
FriendFinder Networks NASDAQFFNTechnologyNA$10.00 - $12.0020.0NANARenCap Securities
Film Department Holdings NASDAQTFDIEntertainmentNA$12.00 - $14.006.5NANAIPO Solutions
China Electric Motor (CELM) NASDAQCELMAutomotive28 Jan$5.50 - $6.505.0$4.50$4.45Roth Capital
Century 21 China NYSECTCReal Estate27 Jan$7.00 - $8.0012.5$7.00$7.18Goldman Sachs
Andatee China Marine Fuel NASDAQAMCFCapital Goods24 Jan$6.00 - $8.003.1$6.3$5.77Rodman & Renshaw
China Hydroelectric NYSECHCEnergy21 Jan$15.00 - $17.006.0$14.80$13.45Broadband Capital
Cellu Tissue NYSECLUConsumer Goods21 Jan$15.00 - $17.007.8$13.00$11.90Goldman Sachs
Chesapeake Lodging NYSECHSPReal Estate21 Jan$20.00 - $20.007.5$20.00$19.00JP Morgan
Symetra Financial NYSESYAInsurance21 Jan$12.00 - $14.0027$12.00$12.70 BofA Merrill Lynch

IPOs in 2009

CompanyExchangeTickerIndustryOffer DateProposed Price RangeShares (in millions)IPO Price1st Day CloseLead Underwriters
Crimson Exploration NASDAQCXPOEnergy16 Dec$6.00 - $8.0020$5.00$4.00Barclays
Kraton Performance Polymers, Inc.NYSEKRABasic Materials16 Dec$16.00 - $18.0010.28$13.50$13.51Credit Suisse
Team Health Holdings LLC NYSETMHHealthcare15 Dec$14.00 - $16.0020$12.00$12.81Merrill Lynch, Pierce, Fenner & Smith Incorporated
Cobalt International Energy LP NYSECIEEnergy15 Dec$15.00 - $17.0063$13.50$13.50Credit Suisse
KAR Auction Services Inc NYSEKARAutomotive10 Dec$15.00 - $17.0023$12.00$12.03Goldman Sachs
Concord Medical Services Holding Ltd. NYSECCMHealthcare10 Dec$9.00 - $11.0012$11.00$9.50Morgan Stanley
China Nuokang Bio Pharmaceutical Inc NASDAQNKBPHealthcare9 Dec$10.00 - $12.005$9.00$8.67Jefferies & Company, Inc.
Pebblebrook Hotel Trust NYSEPEBFinancial Services8 Dec$20.00 - $20.0017.5$20.00$20.45Merrill Lynch, Pierce, Fenner & Smith Incorporated
Archipelago Learning, Inc. NASDAQARCLEducation19 Nov$15.00 - $17.006.3$16.50$18.77Merrill Lynch, Pierce, Fenner & Smith Incorporated
Cloud Peak Energy Inc NYSECLDBasic Materials19 Nov$16.00 - $18.0030.6$15.00$14.84Credit Suisse
Global Defense Technology & Systems, Inc. NASDAQGTECMilitary19 Nov$14.00 - $16.004.6$13.00$13.08Cowen and Company LLC
7 Days Group Holdings Ltd NYSESVNHotels19 Nov$9.00 - $11.0010.1$11.00$12.50JP Morgan Securities
Fortinet Inc. NASDAQFTNTSecurity17 Nov$9.00 - $11.0012$12.50$16.62Morgan Stanley
rue21, inc. NYSERUEConsumer Goods12 Nov$16.00 - $18.006.8$19.00$24.30Merrill Lynch, Pierce, Fenner & Smith
Dollar General NYSEDGConsumer Goods12 Nov$21.00 - $23.0034.1$21.00$22.73Citi
STR Holdings, Inc. NYSESTRIConsumer Goods6 Nov$11.00 - $13.0012.3$10.00$13.10Credit Suisse
Duoyuan Printing, Inc. NYSEDYPTechnology5 Nov$8.50 - $10.506.45$8.50$7.77Piper Jaffray
Ancestry.com Inc. NYSEACOMHotels4 Nov$12.50 - $14.507.4$13.50$14.20Morgan Stanley
Hyatt Hotels Corp. NYSEHHotels4 Nov$23.00 - $26.0038$25.00$28.00Goldman Sachs
Vitamin Shoppe, Inc. NYSEVSIConsumer Goods27 Oct$14.00 - $16.009.1$17.00$17.95JP Morgan Securities
Addus HomeCare Corporation NASDAQADUSHealthcare27 Oct$11.00 - $13.005$10.00$8.49Robert W. Baird & Co.
Dole Food Company, Inc. NYSEDOLEAgriculture22 Oct$13.00 - $15.0035.7$12.50$12.28Goldman Sachs & Co.
AGA Medical Holdings, Inc. NASDAQAGAMHealthcare20 Oct$19.00 - $21.0013.8$14.50$14.60Merrill Lynch, Pierce, Fenner & Smith Incorporated
ZST Digital Networks, Inc. NASDAQZSTNConsumer Electronics20 Oct$7.50 - $8.503.1$8.00$7.52Rodman & Renshaw LLC
China Real Estate Information Corporation NYSECRICConsulting15 Oct$11.80 - $13.3018$12.00$14.20Credit Suisse
RailAmerica Inc. NYSERAInfrastructure12 Oct$16.00 - $18.0021$15.00$13.75JP Morgan Securities
Mistras Group NYSEMGInfrastructure7 Oct$14.00 - $16.008.70$12.50$12.58JP Morgan Securities
Omeros Corp. NASDAQOMERBiotechnology7 Oct$10.00 - $12.006.82$10.00$8.73Deutsche Bank
Banco Santander (Brasil) S.A. NYSEBSBRFinancial Services6 Oct$12.19 - $13.85525$13.50$13.01Santander Investment Securities
Verisk Analytics, Inc. NASDAQVRSKRisk Management6 Oct$19.00 - $21.0085.25$22.00$27.22Merill Lynch, Pierce, Fenner & Smith Incorporated
Education Management Corporation NASDAQEDMCEducation1 Oct$18.00 - $20.0020.00$18.00$21.77Goldman Sachs
Echo Global Logistics, Inc. NASDAQECHOShipping1 Oct$13.00 - $15.005.70$14.00$14.06Morgan Stanley
Talecris Biotherapeutics Holdings Corp. NASDAQTLCRHealthcare30 Sep$18.00 - $20.0044.7$19.00$21.15Morgan Stanley
Select Medical Holdings Corporation NYSESEMHospitals24 Sep$11.00 - $13.0033.3$10.00$10.09Goldman Sachs
Shanda Games Limited NASDAQGAMEGaming24 Sep$10.50 - $12.5084.00$12.50$10.75Goldman Sachs (Asia)
Artio Global Investors NYSEARTAsset Management23 Sep$24.00 - $25.0023.40$26.00$27.25Goldman Sachs
Apollo Commercial Real Estate Finance, Inc. NYSEARIMortgage23 Sep$20.00 - $20.0020.00$20.00$18.50JP Morgan
Vitacost.com NASDAQVITCOnline Retail23 Sep$11.00 - $13.0011.00$12.00$12.05Jefferies
A123 Systems, Inc. NASDAQAONEStorage23 Sep$8.00 - $9.5025.70$13.50$20.29Morgan Stanley
Colony Financial, Inc. NYSECLNYMortgage16 Sep$20.00 - $20.0012.50$20.00$19.50Merrill Lynch, Pierce Fenner & Smith Incorporated
Crexus Investment Corp. NYSECXSMortgage16 Sep$15.00 - $15.0033.30$15.00$14.63Deutsche Bank Securities Inc.
Lihua International, Inc. NASDAQLIWAMetals4 Sep$4.00 - $4.002.30$4.00$5.41Broadband Capital Management LLC
EmdeonNYSEEMTechnology5 Aug$13.50 - $15.5021.50$15.50$16.52Morgan Stanley
Starwood Property Trust, Inc. NYSE STWD Mortgage11 Aug$20.00 - $20.0025.00$20.00$20.00Merrill Lynch ; Pierce, Fenner & Smith Inc.
Cumberland Pharmaceuticals Inc. NASDAQ CPIX Pharmaceuticals10 Aug$19.00 - $21.005.00$17.00$16.83UBS
Avago Technologies (Video)NASDAQAVGOTechnology5 Aug$13.00 - $15.0036.00$15.00$16.18Barclays Capital, Deutsche Bank
CDC Software (Video)NASDAQCDCSTechnology3 Aug$11.00 - $13.004.80$12.00$9.99Lazard, JMP Securities
PennyMac Mortgage Investment Trust (Video)NYSEPMTFinancials30 JulNA20.00$20.00$19.10Credit Suisse, Deutsche Bank
Sutherland Asset Management (Video)NYSESLDFinancials3 Aug$15.00 - $15.0016.70$15.00NAUBS Investment Bank, Keefe Bruyette Woods
Globe Specialty MetalsNASDAQGSMBasic Materials29 Jul$7.00 - $9.0014.00$7.00$7.09Credit Suisse, Jefferies & Company
LogMeInNASDAQLOGMTechnology1 Jul$14.00 - $16.006.67$16.00$20.02Barclays Capital, J P Morgan
Invesco Mortgage CapitalNYSEIVRFinancials26 Jun$20.00 - $20.008.50$20.00$19.42Credit Suisse, Morgan Stanley
Medidata SolutionsNASDAQMDSOTechnology25 Jun$11.00 - $13.006.30$14.00$17.00Piper Jaffray
Chemspec InternationalNYSECPCConsumer Goods24 Jun$7.00 - $9.008.09$9.00$9.00Citigroup, Credit Suisse
Duoyuan Global WaterNYSEDGWConsumer Goods24 Jun$13.00 - $15.005.50$16.00$21.87Citigroup, Credit Suisse
Cypress Sharpridge InvestmentsNYSECYSFinancials12 Jun$11.00 - $13.009.10$11.00$11.55Merrill Lynch, Morgan Stanley
Government Properties Income TrustNYSEGOVFinancials3 Jun$20.00 - $22.0010.00$20.00$19.47Merrill Lynch
OpenTableNASDAQOPENConsumer Services21 May$12.00 - $14.003.00$20.00$31.89Merrill Lynch
SolarWindsNYSESWITechnology20 May$9.50 - $11.5012.10$12.50$13.75Goldman Sachs, J P Morgan
DigitalGlobeNYSEDGITechnology14 May$16.00 - $18.0014.70$19.00$21.50J P Morgan, Morgan Stanley
Rosetta StoneNYSERSTTechnology16 Apr$15.00 - $17.006.25$18.00$25.12Morgan Stanley, William Blair
Bridgepoint EducationNYSEBPIConsumer Services14 Apr$14.00 - $16.0013.50$10.50$11.20Credit Suisse, J P Morgan
Changyou.comNASDAQCYOUTechnology2 Apr$14.00 - $16.007.50$16.00$20.02Credit Suisse, Merrill Lynch
NIVS IntelliMedia TechNYSENIVConsumer Goods13 Mar$3.50 - $3.500.55$3.50$4.20WestPark Capital
Mead Johnson NutritionNYSEMJNConsumer Services11 Feb$21.00 - $24.0030.00$24.00$26.43Citigroup, Morgan Stanley

IPOs in 2008

CompanyExchangeTickerIndustryOffer DateProposed Price RangeShares (in millions)IPO Price1st Day CloseLead Underwriters
Grand Canyon EducationNASDAQLOPEConsumer Services20 Nov$12.00 - $14.0010.50$12.00$11.85Credit Suisse, Merrill Lynch
Chardan 2008 China Acq CorpNASDAQCACAUFinancials11 Aug$8.00 - $8.006.90$8.00$8.12Brean Murray, Maxim Group
Rackspace HostingNYSERAXTechnology8 Aug$12.00 - $16.0015.00$12.50$10.01Credit Suisse, Goldman Sachs
China Mass Media CorpNYSECMMConsumer Services4 Aug$5.20 - $7.207.20$6.80$6.50Merrill Lynch
China Distance EducationNYSEDLConsumer Services30 Jul$7.00 - $8.008.80$7.00$6.15Citigroup, Merrill Lynch
GT Solar InternationalNASDAQSOLRTechnology24 Jul$15.50 - $17.5030.30$16.50$14.59Credit Suisse, UBS Investment Bank
North Asia Investment CorpAMEXNHRFinancials23 Jul$10.00 - $10.005.00$10.00$9.69Citigroup
Energy RecoveryNASDAQERIIConsumer Goods2 Jul$7.00 - $9.0014.00$8.50$9.83Citigroup, Credit Suisse
Navios Maritime Acq CorpNYSENNAFinancials25 Jun$10.00 - $10.0022.00$10.00$10.05Deutsche Bank, J P Morgan
Hong Kong HighpowerAMEXHPJConsumer Goods19 Jun$3.00 - $4.000.60$3.25$6.84WestPark Capital
Britania Bulk HoldingsNYSEDWTOther18 Jun$17.00 - $19.008.33$15.00$13.85Banc of America, Goldman Sachs
RHI EntertainmentNASDAQRHIEConsumer Services18 Jun$16.00 - $18.0013.50$14.00$13.50Banc of America, J P Morgan
Safe BulkersNYSESBOther29 May$20.00 - $22.0010.00$19.00$18.90Credit Suisse, Merrill Lynch
American Capital AgencyNASDAQAGNCFinancials15 May$20.00 - $20.0010.00$20.00$19.35Citigroup, Merrill Lynch
Verso PaperNYSEVRSConsumer Goods15 May$16.00 - $18.0014.00$12.00$10.00Citigroup, Credit Suisse
Western Gas PartnersNYSEWESOil & Gas9 May$16.00 - $19.0018.75$16.50$16.50Citigroup, UBS Investment Bank
Colfax CorpNYSECFXConsumer Goods8 May$15.00 - $17.0018.75$18.00$21.00Lehman Brothers, Merrill Lynch
Real Goods SolarNASDAQRSOLConsumer Goods8 May$10.00 - $12.005.50$10.00$8.80ThinkEquity
Pioneer Southwest EnergyNYSEPSEOil & Gas1 May$19.00 - $21.008.25$19.00$19.65Citigroup, Deutsche Bank
Hatteras FinancialNYSEHTSFinancials25 Apr$24.00 - $26.0010.00$24.00$24.68Banc of America, Keefe Bruyette Woods
Whiting USA Trust INYSEWHXFinancials25 Apr$19.00 - $21.0010.85$20.00$20.85Raymond James, Wachovia Securities
American Water WorksNYSEAWKUtilities23 Apr$24.00 - $26.0058.00$21.50$20.60Citigroup, Goldman Sachs
Intrepid PotashNYSEIPIBasic Materials22 Apr$27.00 - $29.0030.00$32.00$50.40Goldman Sachs, Merrill Lynch
VisaNYSE VFinancials20 Mar$37.00 - $42.00406.00$44.00$56.50 Goldman Sachs, J P Morgan
CardioNetNASDAQBEATHealth Care18 Mar$18.00 - $20.004.50$18.00$17.70Citigroup
Heritage-Crystal CleanNASDAQHCCIConsumer Services12 Mar$10.50 - $12.501.91$11.50$14.19William Blair, Piper Jaffray
BioHeartNASDAQBHRTHealth Care19 Feb$6.00 - $8.001.10$5.25$5.00Dawson James, Merriman Curhan Ford
ArcSightNASDAQARSTTechnology14 Feb$9.00 - $11.006.86$9.00$8.78Lehman Brothers, Morgan Stanley
MAKO SurgicalNASDAQMAKOHealth Care14 Feb$10.00 - $11.005.10$10.00$9.18J P Morgan, Morgan Stanley
Asia TimeAMEXTYMConsumer Services12 Feb$3.00 - $4.000.84$3.50$8.50WestPark Capital
ATA IncNASDAQATAIConsumer Services29 Jan$9.50 - $11.504.87$9.50$8.75Merrill Lynch
Cascal B.V.NYSEHOOUtilities29 Jan$12.00 - $13.0012.00$12.00$12.00Credit Suisse, J P Morgan
IPC The Hospitalist CompanyNASDAQIPCMHealth Care25 Jan$15.00 - $17.005.20$16.00$20.48Credit Suisse, Jefferies & Company
RiskMetrics GroupNYSERMGFinancials25 Jan$17.00 - $19.0014.00$17.50$23.75Merrill Lynch
Williams Pipeline PartnersNYSEWMZOil & Gas18 Jan$19.00 - $21.0016.25$20.00$20.00Citigroup, Lehman Brothers

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