GoPro turned in a pro performance Thursday in its market debut, the IPO headliner in a hectic week that indicates heightened exuberance for new issues.
The wearable action-camera maker rose 31% to 31.34 after hitting 33 intraday. GoPro (GPRO) raised $427 million late Wednesday by selling 17.8 million shares at 24, the high end of its expected range.
"It's the IPO of the week," said Linda Killian, principal at IPO research and investment firm Renaissance Capital. "IPO buyers want a growth story and will pay a premium for good companies with terrific products.
GoPro sales rose 87% to $985.7 million in 2013 as net income climbed 88% to $60.6 million.
GoPro is one of eight IPOs so far this week, with at least five slated to launch Friday. But that was about four short of what was initially planned.
The IPO market is currently on a pace not seen in a decade. June could see 38 initial public offerings, the most in one month since 32 in October 2004, according to Renaissance Capital.
IPOs Fast And Furious
There have been 143 IPOs on U.S. markets this year, up 59% from the same period a year ago. That already tops the full-year totals in 2011 and 2012. The IPOs have raised $30.9 billion, up 51%.
And the market is showing no signs of cooling. This month, 37 companies submitted initial IPO filings, with 21 in the past week. There are 135 companies in the pipeline that wish to go public, Renaissance Capital reports.
Alibaba Group (BABA) said Thursday that it will list on the NYSE (ICE), picking it over the Nasdaq (NDAQ). The Chinese e-commerce giant's IPO, which could be the largest U.S. new issue ever, may occur in early August.
"The IPOs just keep coming and coming, but I also think we are heading toward IPO overload," said Scott Sweet, principal researcher at IPOBoutique.com. "The GoPro IPO did well and there's been a cavalcade of recent filings but we're seeing less quality that suggests a possible toppy market," Sweet said.
Biotechs A Mixed Brew
Several biotech IPOs slated for this week were delayed or priced below the expected range, suggesting low interest among institutional buyers. Ambrx (AMBX), KineMed (KNMD) and Microlin Bio (MCLB) were supposed to IPO Wednesday but did not, and are now listed as day-to-day.
Amphastar (AMPH), which did launch Wednesday, priced below its range at 7, but has leapt 43% in its first two sessions.
Several recent biotech IPOs priced and launched strongly, including Kite Pharma (KITE), which flew 71% in its June 20 debut.
In the past year, the health care sector has had 51 IPOs, mostly biotechs. Tech was second, with 36 new issues, then energy at 16.