Market conditions can be a major factor in determining when companies decide to file, and market optimism or pessimism can influence the value of shares, often to the detriment of the company or the investor. First day return: -4.22%
In 2000, companies filing IPOs generated $96.9 billion in the market, but after the dot-com bust, many of these offerings proved significantly overvalued and the market for IPOs dropped to a decade-low $15.2 billion in 2003, according to Renaissance Capital.
This year, Facebook is expected to raise as much as $16 billion through its offering, which would be more than double the $12 billion proceeds from 68 IPOs so far this year. After being reported that Facebook's IPO was oversubscribed, the company increased its price range, as well as shares offered.
With the hotly anticipated Facebook public listing in mind, the CNBC Analytics team looked into IPOs from 2000 to the present to see which ones have been the most - and least - successful in the market since their first offering. The companies are ranked by the total percentage increase and decrease from original listing prices as of market close on May 14, 2012. All IPOs included in this data set have had gross proceeds of $1 billion or greater and excludes SPACs (Special Purpose Acquisitions Company), closed end-funded, and non-operating trust deals.
So, which IPOs had the best and worst performance since 2000? Click ahead to find out.
5. (Worst) Genworth Financial (GNW)
Total return from offer price: -63.33%
Offer Price: $19.50
Offer date: 5/24/2004
First day return: N/A
IPO deal size: $2.82 billion
Industry: Multi-Line Insurance
5. (Best) China Life Insurance (LFC)
Total return from offer price: +486.85%
Offer Price: $18.68
Offer date: 12/11/2003
First day return: -52.38%
IPO deal size: $2.87 billion
Industry: Life/Health Insurance
4. (Worst) Och-Ziff Capital Management (OZM)
Total return from offer price: -64.02%
Offer Price: $32
Offer date: 11/13/2007
IPO deal size: $1.15 billion
Industry: Investment Managers
4. (Best) Google (GOOG)
Total return from offer price: +610.59%
Offer Price: $85
Offer date: 8/18/2004
First day return: +18.04%
IPO deal size: $1.66 billion
Industry: Internet Software/Services
3. (Worst) MetroPCS Communications (PCS)
Total return from offer price: -70.74%
Offer Price: $23
Offer date: 4/18/2007
First day return: +19.13%
IPO deal size: $1.15 billion
Industry: Wireless Telecommunications
3. (Best) PetroChina (PTR)
Total return from offer price: +925.95%
Offer Price: $16.44
Offer date: 3/30/2000
First day return: -0.02%
IPO deal size: $2.74 billion
Industry: Integrated Oil
2. (Worst) Semiconductor Manufacturing Corp. (SMI)
Total return from offer price: -86.34%
Offer Price: $17.50
Offer date: 3/11/2004
First day return: -11.31%
IPO deal size: $1.71 billion
2. (Best) Mastercard (MA)
Total return from offer price: +971.59%
Offer price: $39
Offer date: 5/24/2006
First day return: +17.95%
IPO deal size: $2.39 billion
1. (Worst) MF Global Holdings (MFGLQ)
Total return from offer price: -99.82%
Offer price: $30
Offer date: 7/18/2007
First day return: -8.17%
IPO deal size: $2.92 billion
Industry: Investment Banks/Brokers
1. (Best) CNOOC Ltd. (CEO)
Total return from offer price: +1,325.5%
Offer Price: $15.40
Offer date: 2/22/2001
First day return: +4.68%
IPO deal size: $1.2 billion
Industry: Oil & Gas Production
First day return: -4.22%
BudgetingNo one intends to make a financial mistake, but an unexpected disaster or poor planning could leave you in financial distress.
Bonds & Fixed IncomeA credit risk literature review.
Personal FinanceSimple interest works in your favor when you're a borrower, but against you when you're an investor.
InvestingBased on recent data from the Treasury-Inflation Protected Securities (TIPS) market, it would seem that most investors aren’t worried about inflation.
Investing BasicsEven with the uncertainties of IPOs, companies will keep issuing them in efforts to grow their enterprises, and some will end in disaster.
Technical IndicatorsAutocorrelation is the measure of an internal correlation with a given time series.
TermA public good is an item whose consumption is determined by society, not individual consumers.
InvestingMany global Investment banks are highly involved in the energy industry, but there are also some smaller banks and boutiques that are strong players.
Stock AnalysisLearn about some signs of a potential stock market crash including a high level of margin debt, lots of IPOs, M&A activity and technical factors.
Investing NewsWill Ferrari's shares move fast off the line only to sputter later?
Mutual funds can invest in initial public offerings (IPOS). However, most mutual funds have bylaws that prevent them from ... Read Full Answer >>
In economics, utility function is an important concept that measures preferences over a set of goods and services. Utility ... Read Full Answer >>
Investment banking and commercial banking are two primary segments of the banking industry. Investment banks facilitate the ... Read Full Answer >>
Virtually all types of financial assets and investing instruments are traded on secondary markets, including stocks, bonds, ... Read Full Answer >>
A company would decide to utilize H shares over A shares in its initial public offering (IPO) if that company believes it ... Read Full Answer >>
During an initial public offering, or IPO, a trader may place a buy limit order by choosing "Buy" and "Limit" in the order ... Read Full Answer >>