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First Day IPO Pops

Posted By Barry Ritholtz On May 19, 2011 @ 3:05 pm In Investing,Markets,Psychology | Comments Disabled

In light of today’s LinkedIn (LNKD) double, I want to refer you to this spectacular act of research by Prof. Jay R. Ritter [1] of the University of Florida, who reviewed the initial public offerings (IPOs) of common stock ( >$5.00 and proceeds >$5 million) of all non-ADR operating companies during 1975-2004 that at least doubled in price on the first day of trading.

The ten biggest first-day percentage increases are:

1. Va Linux (12/09/99)  697.50%
2. Globe.com (11/13/98) 606%
3. Foundry Networks (9/28/99) 525%
4. Webmethods (2/11/00) 507.50%
5. Free Markets (12/10/99) 483.33%
6. Cobalt Networks (11/05/99) 482%
7. MarketWatch.com (1/15/99) 474%,
8. Akamai Technologies (10/29/99) 458%
9. Cacheflow (11/19/99) 426.56%
10. Sycamore Networks (10/22/99) 386%.

Professor Ritter’s full research piece has 100s of IPO first day price pops, and makes for fascinating reading.

>

click for full research piece
[2]


Article printed from The Big Picture: http://www.ritholtz.com/blog

URL to article: http://www.ritholtz.com/blog/2011/05/first-day-ipo-pops/

URLs in this post:

[1] Prof. Jay R. Ritter: http://bear.warrington.ufl.edu/ritter/

[2] Image: http://www.ritholtz.com/blog/2011/05/big-ipo-runups-of-1975-2006/

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