How These Two IPOs Performed On Friday
How These Two IPOs Performed On Friday An initial public offering refers to the event when a company’s stock begins trading on a public stock market, be it the New York Stock Exchange or the Nasdaq exchange, for the first time.
Friday’s trading action featured two IPOs: Camping World Holdings (NYSE: CWH), a provider of services, protection plans, products and resources for recreational vehicle (RV) owners.
The other company, Everspin Technologies (NASDAQ: MRAM) is a manufacturer of discrete and embedded magnetoresistive random-access memory (MRAM) and spin-torque MRAM (ST-MRAM).
Here is how the two companies performed during their first day of trading.
Camping World first filed for its initial public offering in mid-June amid great enthusiasm as it is one of the few private companies to record more than $1 billion in annual sales. In fact, the company reported total sales in 2015 of $3.33 billion which represents a 25 percent year-over-year growth.
Profit for 2015 surged by 43 percent to $178.5 million in 2015.
The company has more than 3 million active customers but the total addressable market, that is households in the U.S. who own an RV, is around 89 million.
Camping World priced its initial public offering at $22 a share and opened for trading at $23.75 per share. The stock traded as low as $22.03 and as high as $24.35 before it settled the day at $22.47.
Everspin considers itself a global leader in magnetic memory design and manufacturing. The company boasts a portfolio of more than 500 patents and applications and leads the market in development of both in-plane and perpendicular magnetic tunnel junction (MTJ) ST-MRAM bit cells.
According to Mram-info.com, Everspin generated $26.5 million in revenue in 2015 which marks a slight improvement from $24.9 million in the prior year. On the other hand, the company’s net loss worsened in 2015 to $18.2 million from $10.2 million a year ago.
The company does have over 600 end-customers, including notable names such as NXP Semiconductors and Broadcom.
Everspin priced its IPO at $8 a share and opened at $9.99 per share. However, the stock gave up most of its gains and closed the day higher by just two cents at $8.02.
Forterra, a manufacturer of concrete and iron pipes for the drainage and water transmission sector, confirmed on Friday it has priced its IPO at a range of $19 to $21 per share.
The company’s total sales for the 12 month period ending on June 30 is $1.7 billion. Shares will trade on the Nasdaq exchange under the ticket “FRTA” during the week of October 17, 2016.