How surviving IPOs stack up against the S&P 500

FAQ

What does this page show?

For every US stock that first listed since 2010, it shows the annualized total return since its first closing price, compared to the S&P 500 over the same window. You can filter to true IPOs or include spin-offs, direct listings, and mergers.

Why do almost all of these beat or track the market?

Survivorship bias. The companies shown are current S&P 500 members and a few large recent listings, so they are by definition the IPOs that succeeded. IPOs that failed or were delisted are not in the dataset, which makes IPO performance look far better than it was across all IPOs.

Is this the IPO offer price?

No. Returns start from the first closing price in our data, not the underwriter's offer price, so the first-day pop from offer price to first close is not included.

What's the difference between an IPO, a spin-off, and a direct listing?

An IPO sells new shares to the public through underwriters. A spin-off distributes shares of a unit carved out of an existing parent company (for example GE HealthCare from GE). A direct listing lists existing shares without raising new capital (for example Coinbase and Palantir). We tag mergers and renames too, since their price history starts at the deal rather than a real debut.