Big run-up in share price for Molycorp in a year dominated by public offerings for Chinese companies
As 2010 winds down, it appears Molycorp Inc. Ticker:(MCP) will emerge as the strongest initial public stock offering of the year with a 280% gain since it went public in July.
The two-year-old company, which produces rare earth oxides, outpaced runner-ups BroadSoft Inc. Ticker:(BSFT), a voice over Internet software developer, and HiSoft Technology International Ltd. Ticker:(HSFT), a Chinese provider of outsourced information technology.
BroadSoft shares gained 194% and HiSoft gained 193% from their respective June IPOs.
Of the 150 IPOs during the year, General Motors Corp. Ticker:(GM), was considered the lone “rock star” offering, according to Greg Perlinski, director of editorial at Hoovers Inc.
GM's $15.8 billion November IPO was by far the year's largest, but the stock gained just 4%.
In terms of creating the kind of buzz that lures investors back to the IPO market, Mr. Perlinski said electric vehicle maker Tesla Motors Inc. Ticker:(TSLA) was also considered a “high profile” offering.
Tesla shares gained 42% from the company's $226 million June offering.
Another big performer in 2010 was RealPage Inc. Ticker:(RP), a developer of property management software that saw its stock gain 129% from the August offering.
Fabrinet Ticker:(FN), an electronic equipment maker based in the Cayman Islands, saw its shares gain 90% from its June IPO.
The lone broker-dealer to go public this year, LPL Investment Holdings, has also seen a tidy bump in its market capitalization. LPL stock, which launched in November at $30 per share, was trading at $36.30 this afternoon. That's an increase of about 21% since the company's IPO.
According to Hoovers, which will compile the final 2010 IPO tally after the stock market closes on Friday, Chinese companies represented 30% of the IPOs in 2010.
“In this environment it seems that investors are looking overseas for more certainty,” Mr. Perlinski said.
