Below is data from Kleinwort Benson showing returns for U.S., European and UK IPOs over the last 10 years versus the relevant index. Numbers have been rounded to a decimal place.
U.S. IPO MARKET RETURNS:
Year Average return of IPOs in the year after investment, weighted by company market cap (percent) Return on the S&P 500 index (percent) Difference between IPO return and index return
2003 14.7 12.6 2.1
2004 22.6 11.5 11.1
2005 21.9 11.2 10.7
2006 28.0 16.5 11.5
2007 -29.4 -18.5 -10.8
2008 20.0 -11.3 31.3
2009 3.6 12.2 -8.6
2010 -9.0 0.9 -9.9
2011 5.5 29.7 -24.2
2012 33.4 20.0 13.3
Average annual excess return over S&P 500 for U.S. IPOs = 2.66 percent
EUROPEAN IPO MARKET RETURNS:
Year Average return of IPOs in the year after investment, weighted by company market cap (percent) Return on the MSCI Europe index <.MSCIEU> (percent) Difference between IPO return and index return
2003 22.3 13.3 8.9
2004 49.2 25.8 23.5
2005 9.7 15.5 -5.8
2006 24.3 20.0 4.3
2007 -30.0 -14.3 -15.7
2008 4.5 5.8 -1.3
2009 13.1 5.5 7.6
2010 -34.2 -13.2 -21.1
2011 -8.7 21.0 -29.7
2012 16.6 22.7 -6.0
Average annual excess return over MSCI Europe for European IPOs = -3.5 percent
UK IPO MARKET RETURNS:
Year Average return of IPOs in the year after investment, weighted by company market cap (percent) Return on the FTSE All Share index <.FTAS>(percent) Difference between IPO return and index return
2003 19.8 12.9 6.9
2004 33.4 23.8 9.6
2005 17.9 13.5 4.4
2006 5.5 14.4 -8.9
2007 -38.8 -16.3 -22.4
2008 -17.7 3.4 -21.1
2009 3.8 14.5 -10.8
2010 -10.6 -5.9 -4.6
2011 -8.9 21.1 -30.0
2012 -6.5 18.4 -24.8
Average annual excess return over FTSE All Share index for UK IPOs = -10 percent
RETURN ON TOP 10 BIGGEST EUROPEAN IPOS SO FAR IN 2013
Company name IPO price Closing market price on Oct. 30 % change
Royal Mail (>> Royal Mail PLC) 330 pence 541.4 pence 64.1
LEG Immobilien (>> LEG Immobilien AG) 44 euros 42.77 euros -2.8
TCS (>> TCS Group Holding PLC) $17.5 $18.07 3.3
bpost (>> BPOST) 14.5 euros 15.25 euros 5.2
Esure (>> Esure Group PLC) 290 pence 229.5 pence -20.9
Cembra Money Bank (>> Cembra Money Bank AG) 51 Swiss francs 57.9 Swiss francs 13.5
Partnership Assurance (>> Partnership Assurance Group PLC) 385 pence 411.8 pence 7.0
Deutsche Annington (>> Deutsche Annington Immobilien SE) 16.5 euros 19.1 euros 15.8
Foxtons (>> Foxtons Group PLC) 230 pence 316.5 pence 37.6
Kion (>> Kion Group AG) 24 euros 30.2 euros 25.8
Source: Kleinwort Benson, Thomson Reuters
(Compiling by Kylie MacLellan and Sinead Cruise; Editing by Louise Ireland)