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Coming off a year where global IPO performance declined across the board, shares of Tumi Holdingstraveled in high style during their debut on the Big Board.
Tumi shares opened at $26 a share and soared more than 44 percent above the stock’s offering price. The stock , which trades on the New York Stock Exchange under the ticker TUMI, was priced at $18 a share, above the estimated range of $15 to $17, valuing the company at $1.22 billion.
But it’s been a tough market for new stocks. According to Renaissance Capital, U.S. IPOs underperformed the S&P 500 significantly in 2011. Some notable disappointments include FriendFinder, which closed down 21 percent on its first day, and has been down 88 percent since its debut last year.
But there have been some bright spots in the IPO market as well. Investors have shown an appetite for luxury stocks, and Tumi operates in that high-end world.
The success of Tumi’s debut will be closely watched after the tremendous run Michael Kors shares had since their debut on Dec. 15, 2011. Shares of Kors have more than doubled since going public, up 114 percent as of Wednesday’s close. Currently, all nine analysts represented on Thomson Financial have buy ratings on Kors.
But will Tumi travel in the same circle as Kors?
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