The Exchange

IPO Scorecard: Return of the Homebuilders

The second homebuilder to go public this year was trading higher Wednesday, with Taylor Morrison's (TMHC) shares rising 5% on the NYSE after pricing at $22 the previous evening.

If all goes according to plan, it won't be the last. William Lyon Homes filed to go public  -- and raise up to $200 million -- on Tuesday. TRI Pointe Homes (TPH), the first homebuilder to go public since the pre-housing bust year of 2004, started trading in January.

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Credit: Business Wire

The return of the builders to Wall Street, along with the general rise of these stocks over the past year, comes as data increasingly point to a housing market rebound, albeit one with plenty of caution thrown in. (Click here for our senior columnist Michael Santoli's take on homebuilder stocks as "a poor risk-reward bargain for long-term holders.")

Meanwhile, with a rash of recent pricings and some highly anticipated upcoming debuts, such as SeaWorld (which could make one of the largest IPO splashes of 2013), it's time to update our IPO scorecard.

[See related piece: Facebook Debacle Stands Out in Mixed Year for IPOs]

Since our most recent report on March 14, 11 companies, including Marin Software (MRIN), Pinnacle Foods (PF) and Five Oaks (OAKS), have hit the market. Along with Taylor Morrison, Knot Offshore Partners (KNOP) -- an owner and operator of shuttle tankers – also started trading on Wednesday. So far, it's up 5% from its offer price of $21.

Of the debuts since the last report, the Watertown, Mass.-based biotechnology company Enanta Pharmaceuticals (ENTA) has seen the best return as of Tuesday’s close, gaining 47% since it started trading March 20 at an offer price of $14. The Chicago-based real estate investment trust Aviv (AVIV) comes in second, up 24.8% from its offer price of $20, while software company Model N (MODN) is very close behind, advancing 24.3% from its $15.50 offer price.

Parsippany, N.J.-based Pinnacle Foods, which owns familiar pantry brands including Duncan Hines, Vlasic and Mrs. Butterworth’s, has risen 20% from its $20 offer price. And rounding out the top 5 is Marin Software, up 12% from its $14 IPO price.

The only one of those 11 companies showing a negative return as of April 10 is Five Oaks, an investor in mortgage-backed securities. As of close on Tuesday, the stock was down just 0.4% from its offer price of $15.

So far in 2013, there have been 46 IPOs priced on the global market, down 8% from this time last year. But the total proceeds of $22.3 billion are up a healthy 62.8% from the same period in 2012, according to Renaissance Capital. The U.S. market alone has seen 34 IPOs priced, 22.7% fewer than last year. However, proceeds raised are at $8.5 billion ($7.6 billion of that in the first quarter), 37% more than last year at this time. The average IPO has returned 16% from its pricing.

In the global picture, tech has seen the most IPOs this year, with 12. For the U.S., the financial sector wins thus far, with 11 companies priced.

On that note, a heated IPO-themed battle between NYSE Euronext and Nasdaq OMX Group has emerged in the past week, as each of the exchanges claims to have listed the most global IPOs in the first quarter. The smackdown centers on what exactly defines an IPO; Nasdaq includes REITs, spin-offs and "best effort" deals, while the NYSE's definition is composed of traditional IPOs, REITs and closed-end funds. This fight doesn't reach the heights of the drama spawned by last year's disastrous Facebook (FB) debut, but it's an interesting one for IPO watchers.

The most high-profile IPO withdrawal so far this year has been from Toys R Us, which earlier this month, amid slumping sales and increasing competition, officially nixed its plan for an $800 million offering, first filed back in 2010.

Below are the updated IPO report cards for 2013, highlighting both the leaders of the pack and the companies bringing up the rear. These numbers reflect prices as of the close on Tuesday (data from Renaissance Capital).

Winners:

Company Ticker Offer First Day Total Return
ExOne XONE $18.00 +47.3% +72.2%
Norwegian Cruise NCLH $19.00 +30.5% +59.7%
Boise Cascade BCC $21.00 +24.5% +50.6%
Bright Horizons BFAM $22.00 +28.7% +49.9%
Enanta Pharmaceuticals ENTA $14.00 +22.7% +47.5%

Losers:

Company Ticker Offer First Day Total Return
Professional Diversity IPDN $8.00 -4.1% -25.0%
KaloBios Pharmaceutical KBIO $8.00 0.0% -25.0%
Orchid Island ORC $15.00 -3.3% -8.5%
ZAIS Financial ZFC $21.25 -6.1% -1.4%
Five Oaks OAKS $15.00 -3.3% -0.4%
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