This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

What We Can Learn From IPO Successes and Failures

Stocks in this article: INGFBSEASZNGALNKDGRPNGPROBXVOYABUD

NEW YORK (TheStreet) -- The improving health of global markets has brought with it a spate of new stock listings during the past couple of years, which will reach a new pinnacle with the upcoming Alibaba IPO.

The first quarter saw 68 IPOs in Europe, the most since 2007, a sign the increase in IPOs throughout 2013 wasn't a one-off.

TSB, Zoopla Property Group and GoPro (GPRO) are just a few of the other companies to recently list in the U.S. and UK this year, and there's still plenty of opportunity for investors who aren't yet suffering from "IPO fatigue."

>>GoPro's Future Is Foggy Despite Picture-Perfect IPO

However, despite a broadly healthy performance across the markets, the outcome of major recent IPOs has been mixed. Can we learn from some of the bigger successes and flops and apply that to upcoming IPOs?

ING U.S. (Voya Financial)

ING (ING), a Dutch financial service provider, floated its U.S. business -- now called Voya Financial (VOYA) -- on the Nasdaq last year. The share price was initially slightly below expectations, and trading closed on its first day at $20.67, above the $19.50 price of the IPO but still below ING's intended level of $21-$24.

A disappointing result for ING has turned into a positive one for the new owners of its stock, which has risen 4.1% for the year to date and 33% for the year to $36.58, as of the Tuesday close. That rise occurred mostly in the first six months of the stock going public; by Nov. 6 (just over six months after the IPO), it had reached a price of $33.60.

It's possible the rebranding to Voya Financial, which was announced alongside the IPO and now implemented, was responsible for the initial faltering of the share price. It may also be blamed on the "unfashionable" nature of the stock. Saga Group, a more recent insurance provider to list in the UK, was also priced below expectations.

It's clear, though, that a profitable business with a secure future can swiftly overcome a blip like an unsure IPO.

Facebook

Another company with a stock price that hasn't had an entirely easy path to its current high is Facebook (FB). After a disappointing listing that valued the company at $105 billion in May 2012, it has seen an impressive 64% rise in value. Its share price ended the first day of trading at $38.20 and closed Tuesday at $68, up nearly 25% for the year to date.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,614.81 +215.14 1.31%
S&P 500 1,941.28 +37.27 1.96%
NASDAQ 4,419.4780 +103.4040 2.40%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs