Yesterday’s debut of online loan facilitator LendingClub Corporation’s $870 million IPO enjoyed strong investor support as the company’s shares closed with a better than 56% gain. According to S&P Capital IQ data that represents the fifth best debut among information technology sector IPOs this year and the best debut among tech IPOs since Cyber-Ark Software Ltd.’s 87% advance of its launch in late September.
Yet, does a sharp advance suggest continued moves to higher ground? A review of the subsequent performance of leading tech IPO completed this year indicates a less than robust showing. Specifically, of those top first day tech IPO gainers profiled below, five lost ground following their initial advance while the average gain for the group was a modest 1.8%. To this end, the fast break out for some has quickly faded away.