The IPO Buzz: A Labor Day Parade of Profits

That’s a good thing because the IPO production line traditionally closes down from mid-August to mid-September for the Labor Day break. The IPO calendar is empty for the next three weeks. Most bankers have flown off to Cabo or some other exotic place to soak up the sun.  
 
So let’s take a look at the IPOs priced just before and after the Labor Day break over the past four years. In almost every instance, these deals made money.
 
2012
The last IPO before Labor Day:
On Aug. 15, 2012, Hi-Crush Partners LP (HCLP) priced its IPO of 11.3 million shares at $17 each. It closed its opening day at $20. Fast forward a year later to Friday, Aug. 16, 2013, when it closed at $23.11, UP 35.9 percent from its IPO price.
 
The first IPO after Labor Day:
On Sept. 19, 2012, Capital Bank Financial Corp. (CBF) priced its IPO of 10 million shares at $18 each. It closed its opening day at $18.19. Leap ahead a year later to Friday, Aug. 16, 2013, when it closed at $19.04, UP 5.8 percent from its IPO price.
 
2011
The last IPO before Labor Day:
On Aug. 10, 2011, Tudou Holdings priced its IPO of 6 million shares at $29 each. It closed its opening day at $25.56. A year later, on Aug. 23, 2012, Tudou was acquired by Youku Tudou (YOKU) for an exchange of stock.
 
The first IPO after Labor Day:
On Oct. 14, 2011, Ubiquiti Networks (UBNT) priced its IPO of 7 million shares at $15 each. It closed its opening day at $17.50. Fast forward almost two years later to Friday, Aug. 16, when it closed at $29.47, UP 96.5 percent from its IPO price.
 
2010
The last IPO before Labor Day:
On Aug. 26, 2010, Whitestone REIT (WSR) priced its IPO of 2.2 million shares at $12 each. It closed its opening day at $11.50. Zoom forward to Friday, Aug. 16, 2013, when it closed at $14.87, UP 23.9 percent from its initial public offering price.
 
The first IPO after Labor Day:
On Sept. 17, 2010, SouFun Holdings Limited (SFUN) priced its IPO of 2.9 million shares at $10.625 each (adjusted for a 4-for-1 stock split) and closed its opening day at $18.375. Sprint ahead to Friday, Aug. 16, 2013, when it closed at $36.17, UP 240.4 percent from its initial public offering price.
 
 
2009
The last IPO before Labor Day:
On Aug. 12, 2009, Starwood Property Trust, Inc. (STWD) priced its IPO of 40.5 million shares at $20 each. It closed its opening day at $20. Nearly four years later, on Friday, Aug. 16, 2013, it closed at $24.76, UP 23.8 percent from its initial public offering price.
 
The first IPO after Labor Day:
On Sept. 4, 2009, Lihau International (LIWA) priced its IPO of 2.3 million shares at $4 each. It closed its opening day at $5.41. Almost four years later, on Friday, Aug. 16, it closed at $5.13, UP 28.3 percent from its initial public offering price.
 
This brings us to next week.
 
The IPOScoop.com staff will join the ranks of those taking a vacation. We will not be publishing next week.
 
As we have seen many times in today’s IPO market, though, the calendar can fill up quickly.
 
Stay tuned.
 
 
Disclosure: Neither the author nor anyone else on the IPOScoop.com staff has a position in any stocks mentioned, nor do we trade or invest in IPOs. The author and IPOScoop.com staff do not issue advice, recommendations or opinions.