2014 IPO Update: A Look at the Debutantes

by Crestmark 18. August 2014 05:29

Believe it or not, 2014 is already more than half over. It started out with a bang when sixteen companies had their financial coming out parties in January, and it's been a busy year ever since. There are 135 initial public offerings (IPOs) on the books so far for 2014. The step from being a privately held company to IPO has had a positive effect on some, but for others – not so much. Let's take a look at five debutantes of 2014 to see how they've fared.

                     stock market

Parsley Energy

Parsley Energy, Inc. (NYSE:PE), based in Midland, Texas, went public on the NYSE on Friday, May 23, 2014. With operations in the Midland Basin, the independent oil and gas company has grown significantly from a two-person start-up in 2008 to a solid producer of 12,000 barrels of oil per day. Parsley's initial offering of 50 million shares made their market entrance at $18.50. They closed last week at $23.73 with 117.81 million shares.

ServiceMaster

ServiceMaster Global Holdings, Inc. (NYSE:SERV) debuted with an opening share price of $17 on Wednesday, June 25. It closed at $17.95 on its first day. The commercial and residential maintenance and service provider started with an initial offering of 35.9 million shares. As of Monday, June 30, it was selling at $18.75 per share.

Eagle Pharmaceuticals 

Not all IPOs have done as well as they'd hoped. Eagle Pharmaceuticals (NASDAQ:EGRX) went public on Wednesday, Feb. 12. It sold 3.4 million shares. The New Jersey-based company opened at $15, closing on its first day at just $12.83. It has rebounded a bit, bumping up to $13.57 as of Monday, June 30. Eagle Pharmaceuticals, founded in 2007, develops and commercializes injectable drugs for oncology and critical care medicine. 

Malibu Boats

Based in Malibu, Tennessee, this sporting boats manufacturer has made modest gains as one of the early IPO debutantes of 2014. Malibu Boats (NASDAQ:MBUU) opened at $14 on its first day, Friday, Jan. 31, closing at $17.03. It sold 7.1 million shares. As of June 30, the recreational boating industry continues to embrace Malibu, as its stock price was holding at $20.03. 

GoPro

One of the biggest splashes in IPOs for 2014 has been GoPro (NASDAQ:GPRO). The innovative highline sports camera maker has gained a lot of attention with its recent offering, opening at $24 on Thursday, June 26. With much excitement around its first day, it closed at $31.34. It sold 17.8 million shares. As of June 30, GoPro was selling at $35.76. 

As IPOs continue to garner attention in 2014, with many companies planning to go public before 2015there's hope for upcoming public offerings for the rest of the year. For companies that seek an increase in funding, the market has shown promise for some, but for others, it's just been a struggle.Going public isn’t the only way to raise funding, however – if your business is in need of working capital, call us today to talk about options - we are happy to help! 


 

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The Shifting Role of E-Commerce in the U.S. Economy

by Crestmark 11. August 2014 09:56

The Internet's impact on the U.S. economy is always growing. The share of online sales is slowly creeping up as the share of brick-and-mortar retailers continues to decline year over year.

E-tailers See Growth

A recent study by the Centre for Retail Research estimates that the online retail share of sales in the U.S. is expected to hit 11.6 percent this year. The figures for nine major countries, including G-8 nations France, Germany, Italy and the United Kingdom, were based on estimated online retail sales of goods. This is good news for U.S. e-tailers, who rely on 55 percent of the country's population to shop online. Online sales that were ordered via mobile devices are estimated to be as much as 13.8 percent for 2013, and are expected to rise to 19.9 percent this year. These figures didn't even include restaurant food, insurance, tickets, and gambling purchases.

                                                     

E-commerce Sales Are Up 

The U.S. Census Bureau has also announced that for the first quarter of 2014, the total retail e-commerce sales are up 2.8 percent over the fourth quarter of 2013. That's in increase of $71.2 billion. The estimate is adjusted for seasonal variation, not price changes. When compared to the first quarter of 2013, the increase is 15 percent. Unadjusted, the year-over-year comparison is an increase of 14.9 percent for e-tailers, and an increase of 2.2 percent for all retail sales.

Retail Storefronts Decline during E-commerce Rise

While e-commerce increases amid promising signs of an economic recovery in the U.S., more retailers are expected to close their brick-and-mortar storefronts. Staples, Inc. has announced that it plans to close 225 office supply stores by the end of next year. RadioShack, known for selling electronic gadgets and trending tech toys, announced in March that as many as 1,100 of its stores worldwide would close. In recent weeks, however, the company has decreased that number, citing disagreements with its lenders over the best way to manage its poor performance. According to reports by USA Today, RadioShack announced a loss of $191 million in the fourth quarter of 2013 over its 5,524 stores and dealer outlets. With 4,300 brick-and-mortar locations in the U.S., the company still plans to close a large number of stores, but no longer one-fifth of its locations.

The shift from retail storefronts to ecommerce business is hardly over, as there’s dust still left to settle in the broader shopping landscape. This transition is likely to bring more innovation to the marketplace, with brick and mortar stores finding new and creative ways to serve their customers, and internet based businesses working to take market share away from those same companies. This type of healthy competition is great for consumers though, and we look forward to seeing how things play out for the rest of 2014!     


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