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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| Company | Exchange | Ticker | Industry | Offer Date | Proposed Price Range | Shares (in millions) | IPO Price | 1st Day Close | Lead Underwriters |
| Patriot Risk Management | NYSE | PMG | Insurance | NA | $8.00 - $8.00 | 21.2 | NA | NA | FBR Capital Markets |
| JinkoSolar Holding | NYSE | JKS | Energy | NA | $6.00 - $8.00 | 10.6 | NA | NA | Goldman Sachs |
| Graham Packaging | NYSE | GRM | Basic Materials | NA | $14.00 - $16.00 | 23.3 | NA | NA | Citi |
| Ironwood Pharmaceuticals | NASDAQ | IRWD | Healthcare | 2 Feb. | $14.00 - $16.00 | 16.7 | $11.25 | $11.71 | JP Morgan |
| Imperial Capital | NYSE | ICG | Financial Services | NA | $15.00 - $17.00 | 6.7 | NA | NA | RenCap Securities |
| FriendFinder Networks | NASDAQ | FFN | Technology | NA | $10.00 - $12.00 | 20.0 | NA | NA | RenCap Securities |
| Film Department Holdings | NASDAQ | TFDI | Entertainment | NA | $12.00 - $14.00 | 6.5 | NA | NA | IPO Solutions |
| China Electric Motor (CELM) | NASDAQ | CELM | Automotive | 28 Jan | $5.50 - $6.50 | 5.0 | $4.50 | $4.45 | Roth Capital |
| Century 21 China | NYSE | CTC | Real Estate | 27 Jan | $7.00 - $8.00 | 12.5 | $7.00 | $7.18 | Goldman Sachs |
| Andatee China Marine Fuel | NASDAQ | AMCF | Capital Goods | 24 Jan | $6.00 - $8.00 | 3.1 | $6.3 | $5.77 | Rodman & Renshaw |
| China Hydroelectric | NYSE | CHC | Energy | 21 Jan | $15.00 - $17.00 | 6.0 | $14.80 | $13.45 | Broadband Capital |
| Cellu Tissue | NYSE | CLU | Consumer Goods | 21 Jan | $15.00 - $17.00 | 7.8 | $13.00 | $11.90 | Goldman Sachs |
| Chesapeake Lodging | NYSE | CHSP | Real Estate | 21 Jan | $20.00 - $20.00 | 7.5 | $20.00 | $19.00 | JP Morgan |
| Symetra Financial | NYSE | SYA | Insurance | 21 Jan | $12.00 - $14.00 | 27 | $12.00 | $12.70 | BofA Merrill Lynch |
IPOs in 2009| Company | Exchange | Ticker | Industry | Offer Date | Proposed Price Range | Shares (in millions) | IPO Price | 1st Day Close | Lead Underwriters |
| Crimson Exploration | NASDAQ | CXPO | Energy | 16 Dec | $6.00 - $8.00 | 20 | $5.00 | $4.00 | Barclays |
| Kraton Performance Polymers, Inc. | NYSE | KRA | Basic Materials | 16 Dec | $16.00 - $18.00 | 10.28 | $13.50 | $13.51 | Credit Suisse |
| Team Health Holdings LLC | NYSE | TMH | Healthcare | 15 Dec | $14.00 - $16.00 | 20 | $12.00 | $12.81 | Merrill Lynch, Pierce, Fenner & Smith Incorporated |
| Cobalt International Energy LP | NYSE | CIE | Energy | 15 Dec | $15.00 - $17.00 | 63 | $13.50 | $13.50 | Credit Suisse |
| KAR Auction Services Inc | NYSE | KAR | Automotive | 10 Dec | $15.00 - $17.00 | 23 | $12.00 | $12.03 | Goldman Sachs |
| Concord Medical Services Holding Ltd. | NYSE | CCM | Healthcare | 10 Dec | $9.00 - $11.00 | 12 | $11.00 | $9.50 | Morgan Stanley |
| China Nuokang Bio Pharmaceutical Inc | NASDAQ | NKBP | Healthcare | 9 Dec | $10.00 - $12.00 | 5 | $9.00 | $8.67 | Jefferies & Company, Inc. |
| Pebblebrook Hotel Trust | NYSE | PEB | Financial Services | 8 Dec | $20.00 - $20.00 | 17.5 | $20.00 | $20.45 | Merrill Lynch, Pierce, Fenner & Smith Incorporated |
| Archipelago Learning, Inc. | NASDAQ | ARCL | Education | 19 Nov | $15.00 - $17.00 | 6.3 | $16.50 | $18.77 | Merrill Lynch, Pierce, Fenner & Smith Incorporated |
| Cloud Peak Energy Inc | NYSE | CLD | Basic Materials | 19 Nov | $16.00 - $18.00 | 30.6 | $15.00 | $14.84 | Credit Suisse |
| Global Defense Technology & Systems, Inc. | NASDAQ | GTEC | Military | 19 Nov | $14.00 - $16.00 | 4.6 | $13.00 | $13.08 | Cowen and Company LLC |
| 7 Days Group Holdings Ltd | NYSE | SVN | Hotels | 19 Nov | $9.00 - $11.00 | 10.1 | $11.00 | $12.50 | JP Morgan Securities |
| Fortinet Inc. | NASDAQ | FTNT | Security | 17 Nov | $9.00 - $11.00 | 12 | $12.50 | $16.62 | Morgan Stanley |
| rue21, inc. | NYSE | RUE | Consumer Goods | 12 Nov | $16.00 - $18.00 | 6.8 | $19.00 | $24.30 | Merrill Lynch, Pierce, Fenner & Smith |
| Dollar General | NYSE | DG | Consumer Goods | 12 Nov | $21.00 - $23.00 | 34.1 | $21.00 | $22.73 | Citi |
| STR Holdings, Inc. | NYSE | STRI | Consumer Goods | 6 Nov | $11.00 - $13.00 | 12.3 | $10.00 | $13.10 | Credit Suisse |
| Duoyuan Printing, Inc. | NYSE | DYP | Technology | 5 Nov | $8.50 - $10.50 | 6.45 | $8.50 | $7.77 | Piper Jaffray |
| Ancestry.com Inc. | NYSE | ACOM | Hotels | 4 Nov | $12.50 - $14.50 | 7.4 | $13.50 | $14.20 | Morgan Stanley |
| Hyatt Hotels Corp. | NYSE | H | Hotels | 4 Nov | $23.00 - $26.00 | 38 | $25.00 | $28.00 | Goldman Sachs |
| Vitamin Shoppe, Inc. | NYSE | VSI | Consumer Goods | 27 Oct | $14.00 - $16.00 | 9.1 | $17.00 | $17.95 | JP Morgan Securities |
| Addus HomeCare Corporation | NASDAQ | ADUS | Healthcare | 27 Oct | $11.00 - $13.00 | 5 | $10.00 | $8.49 | Robert W. Baird & Co. |
| Dole Food Company, Inc. | NYSE | DOLE | Agriculture | 22 Oct | $13.00 - $15.00 | 35.7 | $12.50 | $12.28 | Goldman Sachs & Co. |
| AGA Medical Holdings, Inc. | NASDAQ | AGAM | Healthcare | 20 Oct | $19.00 - $21.00 | 13.8 | $14.50 | $14.60 | Merrill Lynch, Pierce, Fenner & Smith Incorporated |
| ZST Digital Networks, Inc. | NASDAQ | ZSTN | Consumer Electronics | 20 Oct | $7.50 - $8.50 | 3.1 | $8.00 | $7.52 | Rodman & Renshaw LLC |
| China Real Estate Information Corporation | NYSE | CRIC | Consulting | 15 Oct | $11.80 - $13.30 | 18 | $12.00 | $14.20 | Credit Suisse |
| RailAmerica Inc. | NYSE | RA | Infrastructure | 12 Oct | $16.00 - $18.00 | 21 | $15.00 | $13.75 | JP Morgan Securities |
| Mistras Group | NYSE | MG | Infrastructure | 7 Oct | $14.00 - $16.00 | 8.70 | $12.50 | $12.58 | JP Morgan Securities |
| Omeros Corp. | NASDAQ | OMER | Biotechnology | 7 Oct | $10.00 - $12.00 | 6.82 | $10.00 | $8.73 | Deutsche Bank |
| Banco Santander (Brasil) S.A. | NYSE | BSBR | Financial Services | 6 Oct | $12.19 - $13.85 | 525 | $13.50 | $13.01 | Santander Investment Securities |
| Verisk Analytics, Inc. | NASDAQ | VRSK | Risk Management | 6 Oct | $19.00 - $21.00 | 85.25 | $22.00 | $27.22 | Merill Lynch, Pierce, Fenner & Smith Incorporated |
| Education Management Corporation | NASDAQ | EDMC | Education | 1 Oct | $18.00 - $20.00 | 20.00 | $18.00 | $21.77 | Goldman Sachs |
| Echo Global Logistics, Inc. | NASDAQ | ECHO | Shipping | 1 Oct | $13.00 - $15.00 | 5.70 | $14.00 | $14.06 | Morgan Stanley |
| Talecris Biotherapeutics Holdings Corp. | NASDAQ | TLCR | Healthcare | 30 Sep | $18.00 - $20.00 | 44.7 | $19.00 | $21.15 | Morgan Stanley |
| Select Medical Holdings Corporation | NYSE | SEM | Hospitals | 24 Sep | $11.00 - $13.00 | 33.3 | $10.00 | $10.09 | Goldman Sachs |
| Shanda Games Limited | NASDAQ | GAME | Gaming | 24 Sep | $10.50 - $12.50 | 84.00 | $12.50 | $10.75 | Goldman Sachs (Asia) |
| Artio Global Investors | NYSE | ART | Asset Management | 23 Sep | $24.00 - $25.00 | 23.40 | $26.00 | $27.25 | Goldman Sachs |
| Apollo Commercial Real Estate Finance, Inc. | NYSE | ARI | Mortgage | 23 Sep | $20.00 - $20.00 | 20.00 | $20.00 | $18.50 | JP Morgan |
| Vitacost.com | NASDAQ | VITC | Online Retail | 23 Sep | $11.00 - $13.00 | 11.00 | $12.00 | $12.05 | Jefferies |
| A123 Systems, Inc. | NASDAQ | AONE | Storage | 23 Sep | $8.00 - $9.50 | 25.70 | $13.50 | $20.29 | Morgan Stanley |
| Colony Financial, Inc. | NYSE | CLNY | Mortgage | 16 Sep | $20.00 - $20.00 | 12.50 | $20.00 | $19.50 | Merrill Lynch, Pierce Fenner & Smith Incorporated |
| Crexus Investment Corp. | NYSE | CXS | Mortgage | 16 Sep | $15.00 - $15.00 | 33.30 | $15.00 | $14.63 | Deutsche Bank Securities Inc. |
| Lihua International, Inc. | NASDAQ | LIWA | Metals | 4 Sep | $4.00 - $4.00 | 2.30 | $4.00 | $5.41 | Broadband Capital Management LLC |
| Emdeon | NYSE | EM | Technology | 5 Aug | $13.50 - $15.50 | 21.50 | $15.50 | $16.52 | Morgan Stanley |
| Starwood Property Trust, Inc. | NYSE | STWD | Mortgage | 11 Aug | $20.00 - $20.00 | 25.00 | $20.00 | $20.00 | Merrill Lynch ; Pierce, Fenner & Smith Inc. |
| Cumberland Pharmaceuticals Inc. | NASDAQ | CPIX | Pharmaceuticals | 10 Aug | $19.00 - $21.00 | 5.00 | $17.00 | $16.83 | UBS |
| Avago Technologies (Video) | NASDAQ | AVGO | Technology | 5 Aug | $13.00 - $15.00 | 36.00 | $15.00 | $16.18 | Barclays Capital, Deutsche Bank |
| CDC Software (Video) | NASDAQ | CDCS | Technology | 3 Aug | $11.00 - $13.00 | 4.80 | $12.00 | $9.99 | Lazard, JMP Securities |
| PennyMac Mortgage Investment Trust (Video) | NYSE | PMT | Financials | 30 Jul | NA | 20.00 | $20.00 | $19.10 | Credit Suisse, Deutsche Bank |
| Sutherland Asset Management (Video) | NYSE | SLD | Financials | 3 Aug | $15.00 - $15.00 | 16.70 | $15.00 | NA | UBS Investment Bank, Keefe Bruyette Woods |
| Globe Specialty Metals | NASDAQ | GSM | Basic Materials | 29 Jul | $7.00 - $9.00 | 14.00 | $7.00 | $7.09 | Credit Suisse, Jefferies & Company |
| LogMeIn | NASDAQ | LOGM | Technology | 1 Jul | $14.00 - $16.00 | 6.67 | $16.00 | $20.02 | Barclays Capital, J P Morgan |
| Invesco Mortgage Capital | NYSE | IVR | Financials | 26 Jun | $20.00 - $20.00 | 8.50 | $20.00 | $19.42 | Credit Suisse, Morgan Stanley |
| Medidata Solutions | NASDAQ | MDSO | Technology | 25 Jun | $11.00 - $13.00 | 6.30 | $14.00 | $17.00 | Piper Jaffray |
| Chemspec International | NYSE | CPC | Consumer Goods | 24 Jun | $7.00 - $9.00 | 8.09 | $9.00 | $9.00 | Citigroup, Credit Suisse |
| Duoyuan Global Water | NYSE | DGW | Consumer Goods | 24 Jun | $13.00 - $15.00 | 5.50 | $16.00 | $21.87 | Citigroup, Credit Suisse |
| Cypress Sharpridge Investments | NYSE | CYS | Financials | 12 Jun | $11.00 - $13.00 | 9.10 | $11.00 | $11.55 | Merrill Lynch, Morgan Stanley |
| Government Properties Income Trust | NYSE | GOV | Financials | 3 Jun | $20.00 - $22.00 | 10.00 | $20.00 | $19.47 | Merrill Lynch |
| OpenTable | NASDAQ | OPEN | Consumer Services | 21 May | $12.00 - $14.00 | 3.00 | $20.00 | $31.89 | Merrill Lynch |
| SolarWinds | NYSE | SWI | Technology | 20 May | $9.50 - $11.50 | 12.10 | $12.50 | $13.75 | Goldman Sachs, J P Morgan |
| DigitalGlobe | NYSE | DGI | Technology | 14 May | $16.00 - $18.00 | 14.70 | $19.00 | $21.50 | J P Morgan, Morgan Stanley |
| Rosetta Stone | NYSE | RST | Technology | 16 Apr | $15.00 - $17.00 | 6.25 | $18.00 | $25.12 | Morgan Stanley, William Blair |
| Bridgepoint Education | NYSE | BPI | Consumer Services | 14 Apr | $14.00 - $16.00 | 13.50 | $10.50 | $11.20 | Credit Suisse, J P Morgan |
| Changyou.com | NASDAQ | CYOU | Technology | 2 Apr | $14.00 - $16.00 | 7.50 | $16.00 | $20.02 | Credit Suisse, Merrill Lynch |
| NIVS IntelliMedia Tech | NYSE | NIV | Consumer Goods | 13 Mar | $3.50 - $3.50 | 0.55 | $3.50 | $4.20 | WestPark Capital |
| Mead Johnson Nutrition | NYSE | MJN | Consumer Services | 11 Feb | $21.00 - $24.00 | 30.00 | $24.00 | $26.43 | Citigroup, Morgan Stanley |
IPOs in 2008| Company | Exchange | Ticker | Industry | Offer Date | Proposed Price Range | Shares (in millions) | IPO Price | 1st Day Close | Lead Underwriters |
| Grand Canyon Education | NASDAQ | LOPE | Consumer Services | 20 Nov | $12.00 - $14.00 | 10.50 | $12.00 | $11.85 | Credit Suisse, Merrill Lynch |
| Chardan 2008 China Acq Corp | NASDAQ | CACAU | Financials | 11 Aug | $8.00 - $8.00 | 6.90 | $8.00 | $8.12 | Brean Murray, Maxim Group |
| Rackspace Hosting | NYSE | RAX | Technology | 8 Aug | $12.00 - $16.00 | 15.00 | $12.50 | $10.01 | Credit Suisse, Goldman Sachs |
| China Mass Media Corp | NYSE | CMM | Consumer Services | 4 Aug | $5.20 - $7.20 | 7.20 | $6.80 | $6.50 | Merrill Lynch |
| China Distance Education | NYSE | DL | Consumer Services | 30 Jul | $7.00 - $8.00 | 8.80 | $7.00 | $6.15 | Citigroup, Merrill Lynch |
| GT Solar International | NASDAQ | SOLR | Technology | 24 Jul | $15.50 - $17.50 | 30.30 | $16.50 | $14.59 | Credit Suisse, UBS Investment Bank |
| North Asia Investment Corp | AMEX | NHR | Financials | 23 Jul | $10.00 - $10.00 | 5.00 | $10.00 | $9.69 | Citigroup |
| Energy Recovery | NASDAQ | ERII | Consumer Goods | 2 Jul | $7.00 - $9.00 | 14.00 | $8.50 | $9.83 | Citigroup, Credit Suisse |
| Navios Maritime Acq Corp | NYSE | NNA | Financials | 25 Jun | $10.00 - $10.00 | 22.00 | $10.00 | $10.05 | Deutsche Bank, J P Morgan |
| Hong Kong Highpower | AMEX | HPJ | Consumer Goods | 19 Jun | $3.00 - $4.00 | 0.60 | $3.25 | $6.84 | WestPark Capital |
| Britania Bulk Holdings | NYSE | DWT | Other | 18 Jun | $17.00 - $19.00 | 8.33 | $15.00 | $13.85 | Banc of America, Goldman Sachs |
| RHI Entertainment | NASDAQ | RHIE | Consumer Services | 18 Jun | $16.00 - $18.00 | 13.50 | $14.00 | $13.50 | Banc of America, J P Morgan |
| Safe Bulkers | NYSE | SB | Other | 29 May | $20.00 - $22.00 | 10.00 | $19.00 | $18.90 | Credit Suisse, Merrill Lynch |
| American Capital Agency | NASDAQ | AGNC | Financials | 15 May | $20.00 - $20.00 | 10.00 | $20.00 | $19.35 | Citigroup, Merrill Lynch |
| Verso Paper | NYSE | VRS | Consumer Goods | 15 May | $16.00 - $18.00 | 14.00 | $12.00 | $10.00 | Citigroup, Credit Suisse |
| Western Gas Partners | NYSE | WES | Oil & Gas | 9 May | $16.00 - $19.00 | 18.75 | $16.50 | $16.50 | Citigroup, UBS Investment Bank |
| Colfax Corp | NYSE | CFX | Consumer Goods | 8 May | $15.00 - $17.00 | 18.75 | $18.00 | $21.00 | Lehman Brothers, Merrill Lynch |
| Real Goods Solar | NASDAQ | RSOL | Consumer Goods | 8 May | $10.00 - $12.00 | 5.50 | $10.00 | $8.80 | ThinkEquity |
| Pioneer Southwest Energy | NYSE | PSE | Oil & Gas | 1 May | $19.00 - $21.00 | 8.25 | $19.00 | $19.65 | Citigroup, Deutsche Bank |
| Hatteras Financial | NYSE | HTS | Financials | 25 Apr | $24.00 - $26.00 | 10.00 | $24.00 | $24.68 | Banc of America, Keefe Bruyette Woods |
| Whiting USA Trust I | NYSE | WHX | Financials | 25 Apr | $19.00 - $21.00 | 10.85 | $20.00 | $20.85 | Raymond James, Wachovia Securities |
| American Water Works | NYSE | AWK | Utilities | 23 Apr | $24.00 - $26.00 | 58.00 | $21.50 | $20.60 | Citigroup, Goldman Sachs |
| Intrepid Potash | NYSE | IPI | Basic Materials | 22 Apr | $27.00 - $29.00 | 30.00 | $32.00 | $50.40 | Goldman Sachs, Merrill Lynch |
| Visa | NYSE | V | Financials | 20 Mar | $37.00 - $42.00 | 406.00 | $44.00 | $56.50 | Goldman Sachs, J P Morgan |
| CardioNet | NASDAQ | BEAT | Health Care | 18 Mar | $18.00 - $20.00 | 4.50 | $18.00 | $17.70 | Citigroup |
| Heritage-Crystal Clean | NASDAQ | HCCI | Consumer Services | 12 Mar | $10.50 - $12.50 | 1.91 | $11.50 | $14.19 | William Blair, Piper Jaffray |
| BioHeart | NASDAQ | BHRT | Health Care | 19 Feb | $6.00 - $8.00 | 1.10 | $5.25 | $5.00 | Dawson James, Merriman Curhan Ford |
| ArcSight | NASDAQ | ARST | Technology | 14 Feb | $9.00 - $11.00 | 6.86 | $9.00 | $8.78 | Lehman Brothers, Morgan Stanley |
| MAKO Surgical | NASDAQ | MAKO | Health Care | 14 Feb | $10.00 - $11.00 | 5.10 | $10.00 | $9.18 | J P Morgan, Morgan Stanley |
| Asia Time | AMEX | TYM | Consumer Services | 12 Feb | $3.00 - $4.00 | 0.84 | $3.50 | $8.50 | WestPark Capital |
| ATA Inc | NASDAQ | ATAI | Consumer Services | 29 Jan | $9.50 - $11.50 | 4.87 | $9.50 | $8.75 | Merrill Lynch |
| Cascal B.V. | NYSE | HOO | Utilities | 29 Jan | $12.00 - $13.00 | 12.00 | $12.00 | $12.00 | Credit Suisse, J P Morgan |
| IPC The Hospitalist Company | NASDAQ | IPCM | Health Care | 25 Jan | $15.00 - $17.00 | 5.20 | $16.00 | $20.48 | Credit Suisse, Jefferies & Company |
| RiskMetrics Group | NYSE | RMG | Financials | 25 Jan | $17.00 - $19.00 | 14.00 | $17.50 | $23.75 | Merrill Lynch |
| Williams Pipeline Partners | NYSE | WMZ | Oil & Gas | 18 Jan | $19.00 - $21.00 | 16.25 | $20.00 | $20.00 | Citigroup, Lehman Brothers |
See Also


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