What is an IPO?
An IPO is the first time that the stock of a private company is offered to the public. IPOs are often issued by smaller, younger companies seeking capital to expand, but they can also be done by larger companies looking to become publicly traded. IPO stands for initial public offering, and is essentially a company issuing equity to potential shareholders for a price. DELL, IKEA Dominos pizza and Hallmark are successful and remained private companies, so not every large company goes public. There have been rumours of Krispy Kreme, Tesco Bank and Compare the Market have all been rumoured to float in 2016, and it pays to get in early because from the table below, you can see all the IPO prices have at least doubled since day dot. Risk pays off when its surgically calculated.
Biggest movers and shakers of 2016
Acacia Communications – The IPO has had the biggest % change from the IPO. Acacia Communications is an optical networking telecommunications company. They develop products using a process referred as ‘siliconisation of optical interconnect’ which is essentially a method to convert traditional optical interconnections into a silicon-based chip. Honestly, this is way too complicated for me to understand but the stock has done well, and we can see that the use of fibre technology in transferring and converting data is something to keep an eye on.
Clearside Biomedical – This stock has also jumped more than 200% since its IPO. The volatility of bio-tech stocks over the past few years has scared away many investors but if you get it right you’re going to win big. Clearside Bio believes that the suprachorodial space (behind the retina) is a great space for targeting the retina and choroid to treat sight- threatening diseases. The combating of sensory depriving diseases is going to be an increasingly popular sector of the medical market as we have an ageing population and increases awareness about health. Retirement ages are getting higher and people are banking on these years to actually enjoy life, so they will be willing to ensure that they can make the most of it. The company has a patented microinjection system which is the only non-surgical application to introduce drugs in the targeted eye tissue at the back of the eye via the suprachordial.
We also have;
AveXis – Bio-tech, Gene therapy
Reata – Pharmaceuticals, lung disease
Twilio – Cloud communications platform
Nutanix – Enterprise cloud company
Protaganist theraputics – Bio tech, creates peptide drugs
Novan – Pharmaceutical, dermataology
Impinj – Tech, computer chip design
Harbor One Bank – Banking
There is an overwhelming number of biotech companies on this list. This shows where the future for healthcare and technology is going and the huge impact it is having on the world. Bio techs are working the stock market up and down but unless you’re directly affected, it just runs in the background like a silent motor. Cloud companies are also doing well as is a bank, not just any bank, but one which focuses on the future of mobile banking. These companies are at the pinnacle of change within our contemporary society and the CEO’s have anticipated where the need is going to be. They can be risky, but these new companies can be excellent investments if chosen correctly.
|Company Name||Ticker||Date||IPO Price||Current Price||% Change|
|Reata Pharmaceuticals, Inc.||RETA||5/26/2016||11.00||27.83||153.00%|
|Protagonist Therapeutics, Inc.||PTGX||8/11/2016||12.00||25.49||112.42%|