Top-Performing Companies That Had Their IPO in 2017: A Retrospective on Market Recovery

The year 2017 marked a significant turning point for companies that had their IPO in 2017, signaling a robust recovery in the U.S. capital markets. The broader equity market delivered impressive returns, with the S&P 500 posting gains exceeding 20%, its strongest performance since 2013. This positive momentum extended to the IPO sector, which experienced a dramatic resurgence after several lackluster years. According to Renaissance Capital, 160 companies completed their initial public offerings that year, representing a 52.4% jump from the prior year, while total capital raised surged to $35.5 billion—an 88.8% increase year-over-year. This revival was propelled by favorable economic fundamentals, improving consumer sentiment, and renewed interest from Chinese issuers, particularly in the biotech and technology sectors.

Market Momentum: How 2017 Became a Breakthrough Year for IPOs

The resurgence of IPO activity in 2017 reflected growing confidence among institutional investors and improving macroeconomic conditions. Several catalysts supported this momentum: stronger corporate earnings growth, expectations of continued economic expansion, and the introduction of lower corporate tax rates. Foreign companies, particularly those seeking maximum market exposure, increasingly prioritized listing on U.S. exchanges, with expectations that this trend would continue strengthening. Additionally, the emergence of “unicorns”—private companies valued at $1 billion or more—created substantial pipeline opportunities for future public offerings.

Market Headwinds: Valuation Concerns Tempered IPO Enthusiasm

Despite the overall positive environment, companies that had their IPO in 2017 faced several headwinds that dampened performance. The highly publicized struggles of Snap Inc. (SNAP) and Blue Apron (APRN) sparked investor concerns about inflated valuations and mismatched market expectations. These high-profile disappointments prompted many institutional investors to adopt a more cautious stance, demanding stronger fundamentals and more reasonable valuation multiples. Tax reform legislation, while ultimately beneficial for corporate earnings, initially created uncertainty that caused some investors to defer investment decisions.

Expected Growth Trajectory: Unicorns and Next-Generation Companies

Looking forward from 2017, analysts anticipated that major private companies would make their public market debut, including music streaming platform Spotify and hospitality-technology firm Airbnb. The influx of established private firms with large, loyal customer bases was expected to reshape the IPO landscape and attract broader investor participation. The Federal Reserve’s December 2017 guidance signaled confidence in GDP growth, inflation management, and strong employment conditions, creating a supportive environment for sustained IPO activity in subsequent years.

Five Companies That Had Their IPO in 2017: Top Performers

Among the companies that completed their IPO in 2017, five stood out for delivering exceptional returns to investors:

AnaptysBio, Inc. (ANAB) - San Diego, California

A biopharmaceutical company focused on discovering and developing therapeutic antibodies for treating inflammatory diseases and immuno-oncology applications, AnaptysBio represents the strength of the biotech sector. Headquartered in San Diego, the company concentrates primarily on the U.S. market. The company earned a Zacks Rank of 2 (Buy), reflecting analyst confidence in its pipeline and clinical development efforts.

Roku, Inc. (ROKU) - Los Gatos, California

Operating in the competitive streaming media market, Roku builds platforms designed to deliver entertainment content directly to television sets. With a geographic footprint spanning the United States, Canada, the United Kingdom, Ireland, and France, Roku demonstrated the growing appetite for digital media consumption. The company carries a Zacks Rank of 3 (Hold), indicating a balanced risk-reward profile.

SMART Global Holdings, Inc. (SGH) - Newark, California

As a designer, manufacturer, and supplier of advanced electronic subsystems to original equipment manufacturers (OEMs), SMART Global occupies a critical position in the semiconductor and electronics supply chain. Based in Newark, California, the company serves diverse industrial customers globally. It maintains a Zacks Rank of 1 (Strong Buy), suggesting strong analyst sentiment.

UroGen Pharma Ltd. (URGN) - Ra’anana, Israel

An international biopharmaceutical firm headquartered in Ra’anana, Israel, UroGen Pharma specializes in clinical-stage development of treatments for urological conditions, with particular emphasis on uro-oncology applications. The company’s focus on underserved medical needs attracted investor interest within the biotech community. UroGen carries a Zacks Rank of 3 (Hold).

Calyxt, Inc. (CLXT) - New Brighton, Minnesota

Calyxt operates at the intersection of agriculture, biotechnology, and consumer food products, developing seeds and food ingredients engineered for specific agricultural, feed, and food applications. The company’s innovations in fat saturation reduction and gluten-free technologies address emerging consumer preferences. Based in New Brighton, Minnesota, Calyxt maintains a Zacks Rank of 3 (Hold), reflecting moderate analyst interest.

Legacy and Investment Lessons

The companies that had their IPO in 2017 collectively illustrated both the opportunities and challenges inherent in newly public firms. While some delivered strong returns through disciplined execution and market-responsive strategies, others faced valuation pressures as investors demanded increasingly rigorous fundamental performance metrics. The diversity of sectors—spanning biotech, consumer technology, semiconductors, and specialty agriculture—reflected the broad-based strength of the 2017 IPO market and investor appetite for innovation across multiple industries.