Understanding IPO Performance Tracking

An Initial Public Offering (IPO) is when a private company first sells its shares to the public. Tracking IPO performance involves monitoring the stock's price after it begins trading relative to its issue price and over time.

Key Metrics Calculated by this Tool:

• Gain/Loss from IPO Price: The absolute difference between the current market price (or price at a specific update date) and the IPO issue price.
  Gain/Loss per Share = Update Price - IPO Issue Price
• Percentage Gain/Loss: The gain or loss expressed as a percentage of the IPO issue price. This is a common way to assess performance.
  % Gain/Loss = ((Update Price - IPO Issue Price) / IPO Issue Price) * 100%
• Holding Period: The time elapsed between the IPO date and the date of the price update.
• Annualized Return (CAGR - Compound Annual Growth Rate): This represents the average annual growth rate of the investment from the IPO date to the update date, assuming profits are reinvested. It provides a standardized way to compare performance over different timeframes.
  CAGR (%) = [ (Current Price / IPO Price)(1 / Holding Period in Years) - 1 ] * 100%

Other Common IPO Performance Aspects (Not directly calculated by this tool but for your awareness):

• First-Day "Pop" or Drop: The percentage change from the IPO issue price to the closing price on the first day of trading. This is a widely watched short-term indicator.
• Short-Term Performance: How the stock performs in the weeks or few months following the IPO.
• Long-Term Performance: Performance over one year, three years, etc., compared to the IPO price and relevant market benchmarks.

Factors Influencing IPO Performance:

• Company Fundamentals: The underlying business, growth prospects, profitability, and competitive advantages.
• Issue Pricing: Whether the IPO was priced attractively or overvalued by the underwriters.
• Market Sentiment: The overall mood of the stock market at the time of the IPO and subsequently.
• Industry Trends: Performance of the sector the company belongs to.
• Underwriter Quality: The reputation and track record of the investment banks managing the IPO.
• Lock-up Period Expiries: After an IPO, insiders and early investors are typically "locked-up" from selling their shares for a period (e.g., 90-180 days). When these periods expire, a large supply of shares can hit the market, potentially pressuring the price.
• Float Size: The number of shares available for public trading. A small float can sometimes lead to higher volatility.

How to Use This Logger:

1. Add IPOs (Tab 1): Enter the basic details for each IPO you want to track (Company Name, Ticker, IPO Date, IPO Price, Exchange, Currency).
2. Select IPO & Log Prices (Tab 2):
   • Go to Tab 1, find the IPO in "My Tracked IPOs", and click "Track Performance". This will select it for Tab 2.
   • On Tab 2, you'll see the selected IPO's details. Use the "Add New Price Update" form to log its market price on different dates.
   • As you add updates, the "Performance History" table and "Current Status" summary will show calculated metrics.
3. Download Report (Tab 2): For the selected IPO, you can download a PDF summarizing its details and performance history.

This tool helps you manually log and track IPO performance based on price updates YOU provide. It does not fetch live prices or offer investment advice. IPO investing can be highly volatile and risky; always conduct thorough research (DYOR).