A health care information company and two technology businesses rose in their market debuts Thursday as investors warm to IPOs.
Recent gains in the stock market have helped boost demand for initial public offerings. At least 147 companies have gone public in the U.S. this year, up 52 per cent from the same period in 2012, according to IPO tracking firm Renaissance Capital.
Investors tend to be more confident and willing to bet on a newer company in a rising market. The Dow Jones industrial average and the S&P 500 index rose to all-time highs last week, buoyed by signs of improving economic conditions.
Market watchers were expecting 13 companies to go public this week, the most since 2007 if all priced. As of Thursday, seven had made it to market.
Of the four companies that began trading Thursday, three rose.
— Premier Inc. is a Charlotte, N.C.-based company that collects and analyzes clinical and financial data for health care facilities. It raised $760 million. Shares priced above expectations, suggesting healthy demand from investors, and climbed 13 per cent to $30.50 in the afternoon. The stock trades on the Nasdaq under the "PINC" symbol.
— Covisint Corp., a subsidiary of IT services provider Compuware, is based in Detroit. It makes cloud-computing software for businesses and raised $64 million, pricing within the expected range. The stock gained 30 per cent, to $13 and trades under the "COVS" ticker symbol on the Nasdaq.
— Montage Technology Group Ltd. is a Chinese provider of chips for set-top boxes. Its stock climbed 27 per cent to $12.69 after the company raised $71 million. Shares priced below expectations. The stock is listed on the Nasdaq under the "MONT" symbol.
— Applied Optoelectronics Inc. is a Sugar Land, Texas, company that provides fiber optic networking products used for cable TV and Internet data centres. It raised $36 million. Shares priced below expectations and dropped 1.5 per cent to $9.85. Its stock trades on the Nasdaq exchange under the symbol "AAOI."
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