PE-backed IPOs outperform VC-backed IPOs

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By CPE Analytics

Private Equity (PE) backed initial public offerings (IPOs) generally outperform VC-backed IPOs. How did the PE-backed IPOs perform comparing to VC-backed IPO for the last two years?

CPE Analytics compiled a list of VC and PE backed IPOs from CPE Analytics’ all financing database for the last two years and the results show VC backed IPOs were performing far worse.

There are 15 VC-backed and 17 PE-backed Canadian IPOs on TSX, TSX Venture, NASDAQ and NYSE in the last two years.

For simplicity, we added up the offering prices then compared the sum against the sum of the closing prices, ignoring whether the stock were priced in Canadian or US dollars.

Overall VC backed IPOs performed worse than PE-backed IPOs.

4 of the 15 VC-backed IPOs traded above their offering prices while 10 of the 17 PE-backed IPOs traded above their offering prices.

Star Performers (50+%)

About CPE Analytics

CPE Analytics is Canada’s only all financings, private and public, data provider. We are the only provider that tracks and provides comprehensive analysis on Canadian IPOs.