Given that three initial public offerings were announced in the past week, it makes sense to look back at 2010's other IPOs and see how they are trading. Once the glitter of a new deal fades, stock performance is what really matters.
The findings? Well, they are mixed. Looking solely at IPOs greater than $100-million, the resource and technology sectors had both big winners and undeniable losers. Without a doubt, Tahoe Resources Inc. stands out as the dominant stock, rising around 70 per cent since May. MEG Energy Corp. is also trading above water, close to an 8 per cent gain since late July.
Then there are the losers. First there is Athabasca Oil Sands Corp., which has already garnered much attention. But seemingly under the radar, SMART Technologies Inc. is down a whopping 26 per cent since July.
The 2010 Canadian IPO market has also seen a few REITs go public, as well as Leisureworld Senior Care Corp., which fits into the more stable asset classification. Of the REITs, NorthWest HealthCare Property REIT has performed the best, up almost 16 per cent since March. Homburg Canada REIT is also up nearly 10 per cent.
To put these gains and losses into context, the S&P/TSX is up 7.3 per cent in 2010. Aggregated, IPOs are trading at a 5.4 per cent gain, but if you weight them by their market value, there is almost an 8 per cent loss because SMART and Athabasca hold much more power.
2010 Summary:
Best IPO Performers
Tahoe Resources
IPO Price: $6; Current Price: $10.20
Gain: 70 per cent
NorthWest HealthCare Property REIT
IPO Price: $10; Current Price: $11.56
Gain: 15.6 per cent
Worst IPO Performers
Athabasca Oil Sands
IPO Price: $18; Current Price: $10.98
Loss: 39 per cent
SMART Technologies
IPO Price: $17; Current Price: $12.56
Loss: 26 per cent
Tim Kiladze