If you are interested in looking at IPO performance a watchlist with a couple of simple scripting formulas is a great way to show various measures, such as percentage change from the first day’s open, the number of trading days, and drawdowns from the high. (Note: Optuma clients can download the watchlists at the end of the article.)
Looking at the Australian market first, to date there have been over 100 new listings on the ASX this year, with the best performer (from opening trade price – not offering price) being DGL Group (DGL) which is up over 200% from its May debut, followed by Kuniko Ltd (KNI) at 150%. However, Kuniko is down 44% from the high, as seen in the ‘% from ATH’ watchlist column and the red plot on the chart. Also, note that KNI has only been trading for 29 days, versus 94 days for DGL:
(Click on images to enlarge)
Of the 275 new listings in the US (not including SPACs), Zim Integrated Shipping (ZIM) is up the most from it’s opening traded price of $11.50 on January 28th, followed by Global E Online:
By adding a Summary row to the watchlist via the Properties, you can show various statistics such as the average or median values. In the grey bar at the top of the watchlist we can see there are 275 stocks in the list, and the median value of ‘% from ATH’ is 33.62%, and most of the IPOs are below their opening trade price (median value of -11%).
Depending on your service level you can also group the columns, so if the ‘% from 1st Open’ column is grouped by sign, you can see that only about a third (98) are positive (I hope none of you are in SNTG or any of the others listed below!).
Optuma clients with Australian or US data can save and open the workbooks by clicking the buttons below. Not only do they contain this year’s list, but also those for 2020 and 2019, so you can see how older IPOs have performed longer term.
If you are interested in seeing the scripting formulas used to calculate the columns, right-click on the column header and select Edit Column to open the Script Editor window. For example, the IPO Open price is simply FIRST(OPEN()), and the IPO Date is FIRST(BARDATE()) with the Column Type set to Date and the Date Display Style set to Date. Note the Days Since IPO column is the same script as the IPO Date column but the Date Display Style has been set to Day Count:
Darren Hawkins, MSTA
Senior Software Specialist at Optuma
Darren is the senior Software Specialist at Optuma. He joined the company in 2009 after attending an introductory technical analysis course. Darren now instructs users all over the world, from experienced Wall Street traders and professional money managers to individual traders drawing their first trendlines.
Darren grew up in the UK and attended college in the USA where he earned a BA in Economics from St Mary's College of Maryland. He went on to spend a few years working at the Nasdaq Stock Market in Washington DC. Going on to live and work in Australia, the US and currently the UK, Darren has a broad understanding of the individual needs of traders, portfolio managers and investors utilising a wide range of methodologies.
In 2014 Darren passed the UK-based Society of Technical Analysts diploma course, and when not looking at charts he keeps a keen eye on England's cricket team - especially if they are playing against Australia. He lives in the Essex countryside in England, with wife Wendy and their labrador, Gabba.