Following the recent release of Q2 2018 earnings from Tilray, Inc. (NASDAQ:TLRY), shares of the international cannabis conglomerate have risen further, continuing their rapid ascent towards sky-high price-to-sales multiples.

Given a rise in TLRY share price of over 20% between the close on August 28th and the close today on August 29th, the pot stock has officially secured the position as one of the best performing IPOs in a while.

Risk-On Market Makes for Great IPO Conditions

With the overall equity markets in “risk-on” mode, many companies have taken the opportunity to make Initial Public Offerings, or “IPOs” at favorable valuations.

Essentially, investors in a risk-on environment are willing to take more risk or pay a premium for added profit potential.

The cannabis space is no different, as investors look to gain exposure to the Canadian cannabis industry before recreational sales kick off on October 17th.

Tilray’s Historic Public Markets Debut

On July 19th, the parent company of Canadian licensed cannabis producer Tilray Canada Ltd., IPOed on the NASDAQ, making it the first company of its kind to do so.

Despite over 100 U.S. IPOs having already taken place in 2018, Tilray is the best performer by far and it has only been 30 trading days.

With an initial public offering price of $17.00 USD per share of TLRY, investors who got in at the IPO would be up over 265% based on the August 29th, 2018 closing print of $62.13 USD per share.

Performance of the Last 100 IPOs

Ticker Name IPO Date IPO Price Price as of 8/29/18 at 4:00 PM EST Performace Since IPO ARDS Aridis Pharmaceuticals Inc 8/14/2018 $13.00 $13.50 3.85% MESA Mesa Air Group Inc 8/10/2018 $12.00 $12.85 7.08% PCB Pacific City Financial Corp 8/10/2018 $20.00 $19.40 -3.00% AMAL Amalgamated Bank 8/9/2018 $15.50 $17.52 13.03% VCNX Vaccinex Inc 8/9/2018 $12.00 $10.00 -16.67% ARLO Arlo Technologies Inc 8/3/2018 $16.00 $19.10 19.38% CWK Cushman & Wakefield PLC 8/2/2018 $17.00 $17.81 4.76% SONO Sonos Inc 8/2/2018 $15.00 $19.23 28.20% DAVA Endava PLC – ADR 7/27/2018 $20.00 $26.49 32.45% OPRA Opera Ltd 7/27/2018 $12.00 $12.42 3.50% JG Aurora Mobile Ltd – ADR 7/26/2018 $8.50 $11.35 33.53% BRY Berry Petroleum Corp 7/26/2018 $14.00 $16.00 14.29% CANG Cango Inc – ADR 7/26/2018 $11.00 $9.84 -10.55% FOCS Focus Financial Partners Inc 7/26/2018 $33.00 $42.28 28.12% LQDA Liquidia Technologies Inc 7/26/2018 $11.00 $15.92 44.73% PDD Pinduoduo Inc 7/26/2018 $19.00 $21.15 11.32% TENB Tenable Holdings Inc 7/26/2018 $23.00 $33.74 46.70% AQST Aquestive Therapeutics Inc 7/25/2018 $15.00 $16.86 12.40% BE Bloom Energy Corp 7/25/2018 $15.00 $29.26 95.07% REPL Replimune Group Inc 7/20/2018 $15.00 $20.75 38.33% ALLK Allakos Inc 7/19/2018 $18.00 $40.47 124.83% CNST Constellation Pharmaceuticals Inc 7/19/2018 $15.00 $9.65 -35.67% ESTA Establishment Labs Holdings Inc 7/19/2018 $18.00 $26.86 49.22% MYFW First Western Financial Inc 7/19/2018 $19.00 $17.10 -10.00% TLRY Tilray Inc 7/19/2018 $17.00 $62.88 269.88% CCB Coastal Financial Corp 7/18/2018 $14.50 $16.34 12.69% CRNX Crinetics Pharmaceuticals Inc 7/18/2018 $17.00 $30.91 81.82% RUBY Rubius Therapeutics Inc 7/18/2018 $23.00 $24.87 8.13% DOMO Domo Inc 6/29/2018 $21.00 $22.54 7.33% BJ BJs Wholesale Club Holdings Inc 6/28/2018 $17.00 $29.02 70.71% BV Brightview Holdings Inc 6/28/2018 $22.00 $18.41 -16.32% EVER EverQuote 6/28/2018 $18.00 $13.36 -25.78% FTSV Forty Seven Inc 6/28/2018 $16.00 $15.30 -4.38% TBIO Translate Bio Inc 6/28/2018 $13.00 $10.93 -15.92% TCDA Tricida Inc 6/28/2018 $19.00 $29.50 55.26% HYRE HyreCar Inc 6/27/2018 $5.00 $3.28 -34.40% NTGN Neon Therapeutics Inc 6/27/2018 $16.00 $11.76 -26.50% UXIN Uxin Ltd (ADR) 6/27/2018 $9.00 $6.17 -31.44% AUTL Autolus Therapeutics Ltd – ADR 6/22/2018 $17.00 $28.30 66.47% ECOR electroCore, Inc. 6/22/2018 $15.00 $14.03 -6.47% APTX Aptinyx Inc 6/21/2018 $16.00 $23.30 45.63% AVRO Avrobio Inc 6/21/2018 $19.00 $35.77 88.26% EPRT Essential Properties Realty Trust Inc 6/21/2018 $14.00 $14.51 3.64% IIIV i3 Verticals Inc 6/21/2018 $13.00 $18.33 41.00% MGTA Magenta Therapeutics Inc 6/21/2018 $15.00 $14.45 -3.67% XERS Xeris Pharmaceuticals Inc 6/21/2018 $15.00 $26.17 74.47% EIDX Eidos Therapeutics Inc 6/20/2018 $17.00 $13.91 -18.18% AVLR Avalara Inc 6/15/2018 $24.00 $39.14 63.08% NEW Puxin Ltd 6/15/2018 $17.00 $13.15 -22.65% VRCA Verrica Pharmaceuticals Inc 6/15/2018 $15.00 $17.16 14.40% CHRA Charah Solutions Inc 6/14/2018 $12.00 $7.15 -40.42% USX US Xpress Enterprises Inc 6/14/2018 $16.00 $14.85 -7.19% MGTX MeiraGTx Holdings PLC 6/8/2018 $15.00 $11.34 -24.40% AMBO Ambow Education Holding Ltd (ADR) 6/1/2018 $4.25 $6.71 57.88% ITRM Iterum Therapeutics PLC 5/25/2018 $13.00 $10.40 -20.00% CLPS CLPS Inc 5/24/2018 $5.25 $13.96 165.90% GSKY GreenSky Inc 5/24/2018 $23.00 $19.70 -14.35% KNSA Kiniksa Pharmaceuticals Ltd 5/24/2018 $18.00 $21.50 19.44% SRRK Scholar Rock Holding Corp 5/24/2018 $14.00 $19.00 35.71% EVOP EVO Payments Inc 5/23/2018 $16.00 $23.08 44.25% PS Pluralsight Inc 5/17/2018 $15.00 $33.60 124.00% HUYA HUYA Inc – ADR 5/11/2018 $12.00 $28.76 139.67% EQH AXA Equitable Holdings Inc 5/10/2018 $20.00 $22.75 13.75% EVLO Evelo Biosciences Inc 5/9/2018 $16.00 $13.65 -14.69% OBNK Origin Bancorp Inc 5/9/2018 $34.00 $40.67 19.62% ASLN ASLAN PHARMACEUTICALS ADR REP 5 ORD 5/4/2018 $7.03 $8.06 14.65% BCML BayCom Corp 5/4/2018 $22.00 $25.91 17.77% CBLK Carbon Black Inc 5/4/2018 $19.00 $25.07 31.95% ROAD Construction Partners Inc 5/4/2018 $12.00 $12.09 0.75% STXB Spirit of Texas Bancshares Inc 5/4/2018 $21.00 $21.61 2.90% INSP Inspire Medical Systems Inc 5/3/2018 $16.00 $54.10 238.13% UBX Unity Biotechnology Inc 5/3/2018 $17.00 $17.49 2.88% PRT PermRock Royalty Trust 5/2/2018 $17.00 $14.29 -15.94% DOCU Docusign Inc 4/27/2018 $29.00 $67.87 134.03% GSHD Goosehead Insurance Inc 4/27/2018 $10.00 $29.92 199.20% SMAR Smartsheet Inc 4/27/2018 $15.00 $29.62 97.47% CDAY Ceridian HCM Holding Inc 4/26/2018 $22.00 $38.28 74.00% LASR Nlight Inc 4/26/2018 $16.00 $29.17 82.31% LEVL Level One Bancorp Inc 4/20/2018 $28.00 $27.78 -0.79% PVTL Pivotal Software Inc 4/20/2018 $15.00 $27.44 82.93% SURF Surface Oncology Inc 4/19/2018 $15.00 $9.09 -39.40% ZUO Zuora Inc 4/12/2018 $14.00 $33.30 137.86% GNPX Genprex Inc 3/29/2018 $5.00 $2.61 -47.80% IQ IQIYI Inc 3/29/2018 $18.00 $30.37 68.72% UMRX Unum Therapeutics Inc 3/29/2018 $12.00 $15.96 33.00% BILI Bilibili Inc – ADR 3/28/2018 $11.50 $13.76 19.65% FIXX Homology Medicines Inc 3/28/2018 $16.00 $15.98 -0.12% ONE OneSmart International Edun Gr Ltd – ADR 3/28/2018 $11.00 $8.49 -22.82% OPBK OP Bancorp 3/28/2018 $11.00 $12.20 10.91% GHG GreenTree Hospitality Group Ltd – ADR 3/27/2018 $14.00 $12.24 -12.57% DBX Dropbox Inc 3/23/2018 $21.00 $27.02 28.67% STG Sunlands Online Education Group – ADR 3/23/2018 $11.50 $6.47 -43.74% DNJR Golden Bull Ltd 3/20/2018 $4.00 $7.00 75.00% AIHS Senmiao Technology Ltd 3/16/2018 $4.00 $5.27 31.75% ZS Zscaler Inc 3/16/2018 $16.00 $47.08 194.25% RCUS Arcus Biosciences Inc 3/15/2018 $15.00 $13.93 -7.13% BWB Bridgewater Bancshares Inc 3/14/2018 $11.75 $12.72 8.26% BTAI BioXcel Therapeutics Inc 3/8/2018 $11.00 $8.95 -18.64% FAMI Farmmi Inc 2/16/2018 $4.00 $4.22 5.50% MOTS Motus GI Holdings Inc 2/14/2018 $5.00 $5.16 3.20%

The only IPO that even comes close in terms of performance was that of Inspire Medical Systems Inc. (NYSE:INSP) which is up roughly 239% since it IPOed on May 3rd, 2018.

For comparison, as you’ll see in the table above, some other IPOs this year have gotten hit down as low as -47.80% from their initial offering price.

Conclusion

With only the 100 most recent IPOs of 2018 being considered, it is clear that the capital market conditions for new cannabis listings is far better than new issuances in other sectors like technology and financials which have made up a large portion of IPOs this year.

We’ll be sure to continue monitoring the situation, so be sure to subscribe to Tilray Updates here and Cannabis Stock Updates here so you never miss an important development.