2012 LSE IPOs - How did they perform?


 
2012 was another interesting year for investors with a raft of new companies joining the AIM and Main Market including insurance giant, Direct Line (LSE:DLG) joining the FTSE 250. Other shares bowed out of the LSE, primarily due to insufficient funding - these included Merchant House Group (formerly LSE:MHG), a financial services company. In other cases, some companies failed to make it into the LSE - Property fund Welpic failed to gather enough investor interest for its £100m initial public offering (IPO) hence bowed out before a single trade had been completed. Nonetheless, with around 70 companies joining the LSE with a collected market capitalisation well over £6.5 billion, there have been plenty of opportunities for investors to take advantage of 'early bird' opportunities that in some cases could have seen the initial capital multiply, and in others, crash.


Note: This list does not include shares that have been re-introduced to the LSE having changed their name (e.g. Bullabulling Gold and Enables IT do not qualify). However, Vesuvius and Alent are shown following their demerger from the umbrella company Cookson.

Overall Performance
Taking an broad look at the results of the companies, the average movement across the board was a 10% increase. (I.E. a tracker fund that had an equal value of shares in each would have seen a 10.2% rise). Considering the strong movement of all the major UK indices, that tracker would have actually underperformed the FTSE 100.

The average movement of just the gainers was much stronger at 54.3%, albeit skewed by a few companies that performed extremely well over the period. However, the flip-side to this is that the average fall was 41%. To highlight a few sectors:

- Software & Computer Services = The five IPO shares all experienced significant rises with the lowest being a 55% rise. The average rise was 152.6% and when stripping out the outlier, this is 83.5%.

- Oil & Gas Producers = The eight IPO shares recorded an average 14.8% drop between them and once again when you strip out the sole positive outlier, this average drops steeply to - 33%

- Mining = 11 mining shares IPO'd in 2012 with the average drop between of 18.7%. There was a wide spread though, as with the Oil and Gas Producers With Papua Mining (LSE:PML) the largest riser recording a 77% increase. However, natural resource stocks appear to be out of favour.

Best 5 Performers

1. WANdisco PLC (LSE:WAND) + 429%

2. Retroscreen Virology PLC (LSE:RVG) + 250%

3. Ideagen (LSE:IDEA) + 117%

4. Fastnet Oil & Gas PLC (LSE:FAST) + 116%


5. Belvoir Lettings PLC (LSE:BLV) + 93%

Worst 5 Performers

1. Mercom Oil Sands PLC (LSE:MMO) - 93%

2. Rialto Energy LTD (LSE:RIA) - 90%

3. Latin Resources LTD (LSE:LRS) -71%

4. Ruspetro PLC (LSE:RPO) -70%

5. Global Market Group LTD (LSE:GMC) -69%

Special Mentions

Lead All Investments LTD (LSE:LEAL) - The financial services company listed on the AIM in February 2012 at a list price of 10p/share. The shares peaked at just over 40p representing a 300% plus increase, but have since fallen back to below their IPO price at 8.5p/share

Revolymer PLC (LSE:REVO) - Revolymer has developed gum that retains moisture so that it is easier to remove when stuck to pavements. The company has entered a patent dispute with a US company suggesting infringment, under a year since the IPO in July 2012. The shares have slid from their 100p IPO price to a current 53.5p/share

EastCoal Inc (LSE:ECX) - This smallcap mining company has probably set a record for the quickest suspension from trading following an IPO (due to financial reasons). The shares were only admitted to the London Stock Exchange in late December 2012, and in early May the company announced the shares had been suspended following the need to clarify their financial position. The shares are down 68% since their IPO

Snoozebox (LSE:ZZZ) - Travel and leisure company Snoozebox, probably wins the prize for being the most recent company to see its shares 'drop off a cliff'. Following in the footsteps of Mercom Oil Sands, the shares are down by over 50% in the last month on a continual drop (as opposed to an intra-day spike down

Naibu Global (LSE:NBU) - Quite possibly one of the fundamentally cheapest shares in the world at the moment. The company trades on a PE ratio of just 1.7 with its shares trading at 92.5p and earnings of 53p. Furthermore, the company has £49m in cash and bank balances plus is initiating a maiden final dividend of 4p/share all for a market cap of just £50.7m.

2013 has and will likely continue to present investors (who dare dabble with IPO shares) with numerous opportunities to take advantage of companies the market has missed, or has not yet been able to respond to. With firms including Quixant (LSE:QXT) and Outsourcery (LSE:OUT) being two recent IPOs that have been greeted well by the market, it is certainly worth committing some time to research IPO stocks.

List of all stocks used including IPO Price and Price Performance (Click to Enlarge)


7 comments:

  1. Very very informative! not baffling to see Mercom come bottom of the pack. Will certainly take a looka t Outsourcery and an upcoming IPO called superglass

    Thanks a bunch and look forward to your reviews

    CraigJ

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    1. ditto but wish i had bought into WAND :(

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  2. El1te Do you know where I can find the IPOs Calendar for the London Exchange Market for 2013?

    I want to be able to see when will be the IPO date for some stocks in that particular Exchange Market

    Thanks

    ReplyDelete
    Replies
    1. Hi there,

      There is a link available via the useful links page - it is link 7. I have been unable to find a better list partly because companies usually only give several weeks notice before they list so there is no calendar for months ahead. I'll let you know if I find anything

      El1te

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    2. Thanks a lot

      Delete