2015 IPO Class: A Year-Long Reality Check for 10 Major Companies

When companies that had their IPO in 2015 entered the public markets, investors anticipated significant gains. However, the year-long follow-up revealed a more sobering reality. Of the 10 biggest IPO offerings that year, only a handful delivered positive returns, underscoring the challenges facing newly listed firms navigating volatile market conditions.

The IPO Landscape: 2015’s Subdued Market Dynamics

The appetite for going public has cooled dramatically since the IPO boom of the 1990s. In 1996, a record 845 companies debuted on U.S. exchanges, but 2015 saw only 152 companies raise a combined $25.2 billion through IPOs—a significant drop from 2014’s 244 offerings worth $74.4 billion. This declining trend reflects a more cautious investor base and stricter market conditions.

The initial public offering process carries inherent risks that many retail investors often overlook. Lock-up periods, typically lasting 90 days to two years, prevent company insiders from selling shares immediately, creating selling pressure once restrictions expire. Moreover, IPO pricing is frequently inflated, favoring institutional investors and money managers who secure early allocations. Historical precedent reinforces this caution: Facebook lost nearly 30% of its value during its first year as a public company, a cautionary tale that investors would be wise to remember.

For those considering purchasing shares of newly public companies, the safest approach involves adopting a long-term investment horizon rather than chasing quick profits. With that framework in mind, let’s examine how the 10 largest IPO offerings from 2015 performed over the following year.

Energy Sector Struggles: Companies Confronted by Commodity Headwinds

Several of the largest 2015 IPO companies operated in the energy and pipeline sectors, which faced significant headwinds from collapsing commodity prices.

Pipeline operators emerged as major IPO participants. Columbia Pipeline Partners listed in February 2015 at $23 per share, raising over $1 billion as the year’s first master limited partnership IPO. However, TransCanada’s pursuit of the company proved problematic. After initially acquiring the parent Columbia Pipeline Group, TransCanada offered $15.75 per share in September, later raising the bid to $17. This left the MLP trading 26% below its original offering price.

Tallgrass Energy GP faced similar challenges. This limited partnership, which owns the Tallgrass Energy Partners pipeline operator, raised $1.2 billion during its May 2015 offering. While energy markets eventually recovered, the company’s stock remained pressured, trading at $29 per share and down approximately 11% from its IPO price.

EQT GP Holdings, offering at $27 per share in May 2015, also suffered from weak natural gas pricing. The company’s stake in EQT Midstream Partners—which operates pipelines serving the Marcellus shale region—provided little protection as energy markets deteriorated. The stock declined 13% by the one-year mark.

Diversified Performers: Winners and Underperformers Across Sectors

Beyond energy, the 2015 IPO companies showed markedly different trajectories depending on their business models and market positioning.

Credit reporting agency Transunion bucked the broader trend, advancing 39% after its June 2015 debut at $22.50 per share. Its proprietary database covering over 1 billion consumers, coupled with recurring revenue streams and minimal capital requirements, positioned the company favorably as economic conditions gradually improved.

Blue Buffalo Pet Products, the premium pet-food manufacturer, posted a more modest 24% gain following its July 2015 IPO at $20 per share. The industry’s shift toward premiumization—driven by consumers treating pets as family members—provided a secular growth tailwind for the sector.

In sharp contrast, Fitbit, the wearables pioneer, entered the market at $20 per share in June 2015, raising $731.5 million, only to surrender 63% of its value. Demand for fitness-tracking devices plateaued as smartwatches, particularly Apple Watch, gained dominance. Despite maintaining roughly 23% market share, industry shipments stalled, suggesting the market for specialized fitness devices had peaked.

TerraForm Global, the renewable energy company that raised $675 million in July, experienced even more dramatic losses. Parent company SunEdison’s bankruptcy filing devastated the company’s prospects. The yieldco, which initially traded at $15 per share, plummeted more than 75%, with additional complications arising from change-of-control provisions that would trigger debt defaults if Brookfield Asset Management proceeded with acquisition discussions.

Late-Year IPOs: Mixed Fortunes for Major Offerings

The largest 2015 IPO companies included several October offerings that demonstrated variable performance.

Ferrari, the luxury performance-car manufacturer, initially stalled after raising $893.1 million at $52 per share. However, the company subsequently appreciated 12%, benefiting from strong luxury goods demand. Limited production volumes constrain growth potential, though high-priced limited editions supplement core offerings.

First Data, the payments processor and the year’s largest IPO at $2.6 billion, disappointed initially. The offering priced at $16, below the $18-$20 expected range, showing tepid first-day demand despite the company processing 2,300+ transactions per share. While the company remained unprofitable since 2010, it appeared positioned to record annual profits in 2016, with nine-month earnings of $409 million versus prior-year losses of $105 million. Shares declined 10% from their IPO price.

Univar, the industrial and specialty chemicals distributor, raised $770 million at $22 per share in June 2015. Though it gained 19% by the first-year anniversary, performance deteriorated during the initial six months as oil and gas market weakness pressured demand. However, improving energy prices and strategic acquisitions positioned the company for stronger 2016 performance, with shares gaining over 50% that year.

The Broader Lesson: Why Patience Trumps Enthusiasm for 2015 IPO Investors

Examining the 2015 IPO companies collectively reveals a cautionary narrative. Only four of the ten largest offerings generated positive returns one year later, and several of those gains depended on market-wide recovery rather than company-specific strength. Buyout proposals, even when structured favorably, frequently failed to overcome trading deficits.

This underperformance underscores a fundamental truth about IPO investing: newly public companies present elevated risk during their early trading phases. Investors pursuing long-term wealth accumulation should resist the urge to invest immediately upon market debut. Waiting twelve to eighteen months before evaluating companies that had their IPO provides crucial perspective, allowing fundamentals rather than IPO momentum to drive investment decisions.

The 2015 IPO class demonstrated that going public does not ensure market success. Whether facing commodity headwinds, competitive disruption, or business model challenges, the companies that had their IPO that year illustrated both the opportunities and perils inherent in public markets. For cautious investors, the lesson remains clear: allow newly public companies time to prove themselves before committing capital.