Stocks continue marching to a new high every few days, and that’s making this a great market for Initial Public Offerings (IPOs).
In 2017, 86 companies have gone public. That’s a 65% increase from last year. Meanwhile, the total capital raised by these IPOs grew 153% to $21.4 billion.
The Wall Street Journal reports that 167 private companies ̶ each valued at more than $1 billion ̶ could be preparing to go public right now. Click here to discover how to invest before the IPOs.
Private companies, venture capitalists, company founders and executives know that the late stages of a bull market is a great time to go public.
Unfortunately, most investors can ONLY buy these IPOs after shares start trading. And that means the typical “IPO bump” has already occurred.
However, there’s a secret back door that allows ANY investor to buy private companies weeks and months BEFORE the IPO.
Go here to access my live briefing on this huge growth market ̶ and how to invest in Airbnb, Spotify and Uber before they go public.
Consider these five top companies, the top summer IPOs, and their respective share gains after going public:
Sienna Biopharmaceuticals (NASDAQ: SNNA): +30.5%
Appearances are important, and Sienna Biopharmaceuticals wants to help its patients look their best. The company’s therapies help with acne and the reduction of unwanted hair.
The company raised $65 million in the IPO at $15 per share. Since then, the stock has marched higher to a current $19.54. That move puts Sienna at a 30.5% gain in just a couple days.
Kala Pharmaceuticals (NASDAQ: KALA): +35.8%
Growth investors always love betting on the next amazing medical breakthrough. That’s one reason that many biotech stock IPOs are being well-received in this market. Kala Pharmaceuticals is yet another small company taking advantage of the current environment.
The company is developing treatments for eye conditions and diseases. Kala Pharmaceuticals just completed a phase three trial for drugs that relieve pain and inflammation after ocular surgery.
Kala’s IPO raised $90 million and priced at $15 on July 21. Shares opened around $19 and have since moved up above $20, for a quick 35.8% gain.
Redfin (NASDAQ: RDFN): +44.7%
The company is a real estate marketplace that CEO Glenn Kelman describes as “The Amazon of real estate.” Redfin is a combination of a technology company and a residential real estate brokerage firm. Unlike most real estate firms, Redfin is building its own software to run operations.
Home buyers typically save $3,500 when buying a home through Redfin. And the company charges a seller’s commission of only 1% -to1.5%, versus 2.5% to 3% at traditional brokerage firms.
RDFN shares priced at $15 on July 27. As of this writing, the stock was trading at $21.70 for a gain of 44.7%.
PetIQ (NASDAQ: PETQ): +46.8%
Americans love their cats and dogs, and PetIQ is cashing in on this $8.4 billion market. PetIQ produces pet medications and health and wellness products. The company has become very successful with its own branded products, which are sold directly to vets and retailers including Wal-Mart Stores (NYSE: WMT) and Sam’s Club.
The company raised $100 million in its IPO, at $16 per share. Shares opened for trading on July 24 above $24. The latest price of $23.40 means the stock is up 46.8% from the IPO price.
Akcea Therapeutics (NASDAQ: AKCA): +67%
This IPO was spun off from Ionis Pharmaceuticals (NASDAQ: IONS), a $6.5 billion biotech firm. Akcea is a late-state drug development company working on drugs to treat metabolic diseases caused by lipid tissue disorders. The company has four drugs in development, including one that is in phase three trials.
Biotechs have been among the most popular IPOs recently. Yet Akcea was forced to price its IPO below the expected range of $12 to $14 per share. Instead, the stock offering happened at $8 a share and the company raised $125 million.
Once public, Akcea shares were off to the races. With a 67% gain from the IPO price, this is the best-performing IPO from the summer months.
Those have been this summer’s top five best-performing IPOs. Yet, these are just the start.
Those 167 privately held tech companies with venture capital financing ̶ cited by The Wall Street Journal ̶ are valued at more than $1 billion.
Some of the best-known companies include Lyft ($7.5 billion), Spotify ($8.5 billion), SpaceX ($12 billion), Pinterest ($12.3 billion), Airbnb ($31 billion) and Uber ($68 billion). Plus, there are hundreds of smaller venture capital-backed companies that may be looking to go public or get acquired.
This bull market will NOT last forever. Technology insiders in Silicon Valley ̶ and their investment banking partners in New York City ̶ know that they need to cash in while the market is still hot.
With the stock market hitting new highs every few days, we’re expecting IPO activity to pick up as we head into autumn.
This week’s LIVE briefing brings you up to speed on the IPO boom . . . upcoming stock offerings, and a backdoor secret for grabbing a stake.
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