IPO Market sees high investor participation

November 2
6:31 AM 2013

In a report by USA Today, investors were seen in a frenzy to invest into everything that has a ticker symbol. Stocks that were relatively new to the market had also been targeted by investors.

As an example,The Container Store had shares doubled on its first day of trading Friday from USD18 a share to USD36.20. The Container Store is a retailer that offers organizational supplies such as storage boxes and shelves. It is the fifth IPO that had experienced double share premiums on its first day of trade.

Kathleen Smith of Renaissance Capital said, "The returns (of IPOs) are very strong, probably better than you might expect. No one expected IPOs to trade so well."

Since the last peak in the market in 2007, the performance of initial public offerings had reportedly hit an intense pitch. According to the report, there would be 220 IPOs launched by this year.

"A few years ago, investors only cared with companies did for them in the most recent quarter. Now they're buying off-the-wall projections of 12 to 24 months out," Francis Gaskins of IPO Desktop Premium stated.

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