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The Most Underpriced IPOs Of All Time That Ended Up Soaring on Day 1

The Most Underpriced IPOs Of All Time That Ended Up Soaring on Day 1

Published: by Evan Comen

The Most Underpriced IPOs Of All Time That Ended Up Soaring on Day 1
Bigc Studio
50. Nkarta (NKTX)
CI Photos
49. Jazztel Plc (JAZZ)
15703083
48. Mobileye NV (MBLY)
cono0430
47. Mastercard (MA)
Håkan Dahlström / BY 2.0
46. Zoetis (ZTS)
FamVeld
45. Crowdstrike (CRWD)
Michael Vi
44. BigCommerce Holdings (BIGC)
monticello
43. Certara (CERT)
Mr.Yankittaphak Phoyalo
42. Lemonade (LMND)
Jeff Giniewicz
41. Shoals Technologies Group (SHLS)
Kritsana Maimeetook 81
40. Workday (WDAY)
Dean Drobot
39. nCino (NCNO)
Blackboard
38. LendingClub (LC)
Watchara Ritjan
37. Toast (TOST)
goffkein.pro
36. UTStarcom (UTSI)
shutting
35. Astera Labs (ALAB)
Pixza Studio
34. CureVac B.V. (CVAC)
Billion Photos
33. Gigamedia (GIGM)
Dean Drobot
32. XP Inc (XP)
Bro Crock
31. Blackstone Group LP (BX)
ImageFlow
30. Charter Communications (CHTR)
Nyo09
29. Zoom Video Communications (ZM)
DANIEL CONSTANTE
28. Petco Health and Wellness (WOOF)
Erickson Stock
27. Vroom (VRM)
Mateusz Rostek
26. Intrepid Potash (IPI)
Nordroden
25. General Motors (GM)
Jonathan Weiss
24. Genentech (DNA)
Ground Picture
23. Chewy (CHWY)
JJava Designs
22. GoodRX (GDRX)
BWFolsom
21. Doximity (DOCS)
PeopleImages
20. Array Technologies (ARRY)
Sigur
19. Elanco Animal Health (ELAN)
Yana Tikhonova
18. Agilent Technologies (A)
Totojang
17. C3.ai (AI)
Peshkova
16. PagSeguro Digital Ltd (PAGS)
Rido
15. Kenvue (KVUE)
Masarik
14. Abcellera Biologics (ABCL)
Mongkolchon Akesin
13. Goldman Sachs (GS)
Sergei Elagin
12. Akamai Technologies (AKAM)
Sundry Photography
11. Affirm Holdings (AFRM)
lzf
10. Royalty Pharma PLC (RPRX)
bogubogu
9. Bumble (BMBL)
mynewturtle
8. Snap (SNAP)
AlesiaKan
7. United Parcel Service (UPS)
JL IMAGES
6. Coupang (CPNG)
trabantos
5. DoorDash (DASH)
Diego Thomazini
4. Rivian Automotive (RIVN)
Tada Images
3. Snowflake (SNOW)
T. Schneider
2. Airbnb (ABNB)
Ink Drop
1. Visa (V)
Lets Design Studio
The Most Underpriced IPOs Of All Time That Ended Up Soaring on Day 1
50. Nkarta (NKTX)
49. Jazztel Plc (JAZZ)
48. Mobileye NV (MBLY)
47. Mastercard (MA)
46. Zoetis (ZTS)
45. Crowdstrike (CRWD)
44. BigCommerce Holdings (BIGC)
43. Certara (CERT)
42. Lemonade (LMND)
41. Shoals Technologies Group (SHLS)
40. Workday (WDAY)
39. nCino (NCNO)
38. LendingClub (LC)
37. Toast (TOST)
36. UTStarcom (UTSI)
35. Astera Labs (ALAB)
34. CureVac B.V. (CVAC)
33. Gigamedia (GIGM)
32. XP Inc (XP)
31. Blackstone Group LP (BX)
30. Charter Communications (CHTR)
29. Zoom Video Communications (ZM)
28. Petco Health and Wellness (WOOF)
27. Vroom (VRM)
26. Intrepid Potash (IPI)
25. General Motors (GM)
24. Genentech (DNA)
23. Chewy (CHWY)
22. GoodRX (GDRX)
21. Doximity (DOCS)
20. Array Technologies (ARRY)
19. Elanco Animal Health (ELAN)
18. Agilent Technologies (A)
17. C3.ai (AI)
16. PagSeguro Digital Ltd (PAGS)
15. Kenvue (KVUE)
14. Abcellera Biologics (ABCL)
13. Goldman Sachs (GS)
12. Akamai Technologies (AKAM)
11. Affirm Holdings (AFRM)
10. Royalty Pharma PLC (RPRX)
9. Bumble (BMBL)
8. Snap (SNAP)
7. United Parcel Service (UPS)
6. Coupang (CPNG)
5. DoorDash (DASH)
4. Rivian Automotive (RIVN)
3. Snowflake (SNOW)
2. Airbnb (ABNB)
1. Visa (V)

The Most Underpriced IPOs Of All Time That Ended Up Soaring on Day 1

When a company goes public, it sets an offer price for its shares. Underwriters analyze the company's financials, growth prospects, and comparable IPOs, and create a preliminary valuation and a target price range for the shares. Investors submit indications of interest, and underwriters set a price they believe will entice investors to buy their shares and raise money for the company.

In general, underwriters aim to set a price that will achieve a 10% to 15% return on the first day of trading. While an IPO can flop when it is priced too high, companies also run the risk of leaving money on the table by pricing shares too low. When demand is higher than expected, and the share price doubles or triples in price on the first day, companies are losing out on foregone capital that could have been used for expansion, research and development, or paying down debt.

Over the past several decades, there have been dozens of instances where companies leave hundreds of millions of dollars on the table by pricing their IPO too low. In 2021, Bumble issued 50 million shares of its stock at $43.00 a share. Bumble stock closed at $70.31 on its first trading day, which -- at an increase in $27.31 per share for 50 million shares -- generated $1.4 billion in foregone capital that could have boosted the company's coffers. Bumble's underpriced IPO ranks ninth among all companies. A closer look at the data reveals the most underpriced IPOs of all time.

To determine the most underpriced IPOs of all time, My Investing News reviewed historical data on IPOs from the University of Florida, IPOScoop.com, Bloomberg, Thomson Financial, Dealogic, WSJ.com, and the S.E.C.’s Edgar electronic database of 424B forms. Companies were ranked based on the difference between the closing price on the first day of trading of the IPO and the offer price, multiplied by the number of shares sold -- a measure of "money left on the table" in an initial public offering. Supplemental data on current stock price is from Yahoo Finance.

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