An IPO is a super-profitable tool that can bring tens and even hundreds of percent in literally 1 day. By choosing the right company during an IPO, you can literally double your capital.
Moreover, the IPO market is now available for ordinary traders through the familiar Metatrader. Traders, even without a lot of capital, can participate in an IPO and get fantastic profits.
For those who are not yet familiar with this tool, we have prepared a list of the top 5 IPOs in terms of investor returns. And that’s just in the last 3 years.
Snowflake
A company that Warren Buffett himself invested in. Snowflake is an American cloud solutions developer.
A week before the IPO, the company planned a price of $75 – $85. But the demand was so high that the placement price was raised one and a half times. Up to $120. But even this assessment, as it turned out, was insufficient.
- On listing day, the stock rose to $253.93. At the same time, at the moment on the first day, the price reached $319 per share
- And by the end of the lock up period, the price was above $330.
Beyond Meat
America’s largest meat substitute company went public on the NYSE in May 2019. The initial offering of shares was carried out at a price of $25.
- But on the first day, quotes more than doubled. The closing price is $65.75.
- But the growth didn’t stop there. By the end of the first month, Beyond Meat stock was already trading above $160.
- A month later (in mid-July) it is already more than $270 per share.
it was more than a tenfold increase compared to the offering price.
CureVac
German biotech company CureVac has picked a truly perfect time for its IPO.
- It was held in August 2020. In the midst of the first year of the coronavirus epidemic. And CureVac is just a manufacturer of vaccines (including against COVID-19)
- Secondly, in 2019-2020, IPOs were on the wave of high popularity among investors. Financial markets were brimming with free liquidity and investors’ appetite for risk was very high.
The placement was planned in the range of $14-$16 per security. Due to the very high demand, the company decided to issue an additional amount of shares.
Eventually:
- Trading started at $44 per share.
- The first day ended at $55.90 per share.
- Within a month, the price reached $151.80
It was lmost a tenfold increase in investments in just 1 month
AirBNB
This is a well-known service for short-term rental of residential real estate. But AirBNB is also known for its very successful Nasdaq IPO. Successful both for investors and for the company itself. As part of the initial offering, AirBNB raised $3.5 billion by selling more than 50 million shares.
- IPO participants managed to buy shares at $68.
- But on the first day of trading, their price rose to $144.70 per security. More than 112% profit in one trading session.
- By the end of the lock up period, AirBNB shares already cost over $200.
Inari Medical
Another medical company that held an IPO in 2020. Initial public offering in May at $19 per share.
- On the first day of trading, the price rose to $42.51.
- In the first month, quotes reached $53.67 per share.
- In September, just in time for the end of the lock up period, prices were already above $80.
Moreover, in the future, quotes continued to grow. In March 2021, Inari Medical’s share price was over $120.
These are just a few of the stories. In fact, the list of super profitable IPOs could go on for a very long time. This is a really effective investment tool, which is now available to ordinary traders
