How Has The First IPO Of The Trump Age Performed?

The IPO market, which turned in a lukewarm showing last year, is bracing for a buoyant year in 2017. The long-awaited IPO of Snap Inc., the parent of messaging app Snapchat, was confirmed, as it filed with the SEC the Form S-1 document last Thursday.

Even as investors brace for the resurgence of the IPO market, Benzinga looked at how the first U.S. IPO of the year, the first after President Donald Trump assumed office, fared. Incidentally, Cisco Systems, Inc. (NASDAQ: CSCO)'s purchase of AppDynamics in a $3.7 billion deal led to the cancellation of the first IPO scheduled for the year. Consequently, Keane Group Inc (NYSE: FRAC) become the first company to step into the IPO turf in the New Year.

Keane's Business

Keane Group, based in Houston, Texas, is the largest pure-play providers of integrated well completion in the United States. Of the 26.76 million shares offered through the IPO, 15.70 million shares were offered by the company and the remaining 11.06 million by selling stockholders.

The Debut

The stock was priced at $19 per share and it began trading on the NYSE on January 20 under the ticker symbol FRAC. On its debut, the stock was listed at $22, up 16 percent year-over-year. After hitting an intra-day high of $22.19 the stock gave back some of the gain and still ended roughly 14 percent higher.

Since its debut, Keane stock has been seeing a consolidation move, bouncing in the $20.50–$22.50 range. Apart from its credentials as the first IPO of the year, Keane shares its debut date with the debut of Trump as the president, January 20 being his inauguration date.

Incidentally, the markets resumed the post-election rally after Trump's inauguration. The Dow Industrials scaled over the 20,000 psychological barrier for the first time ever on January 25, 2017. Since January 20, the Dow Industrials has gained 1.23 percent, the S&P 500 Index 1.2 percent and the Nasdaq Composite 2 percent. In comparison, Keane has advanced 14 percent from its listing price.

Image Credit: By Office of the President of the United States - https://twitter.com/VP/, Public Domain, via Wikimedia Commons