The IPO market has thrown up some interesting businesses in 2016 and judging by some of the share price performances so far, it would be fair to say that investors have been treated to some hits and misses.

Investors have naturally been quite cautious towards companies with limited track records and have marked stocks down heavily when it appears prospectus forecasts might be a little too optimistic.

Nevertheless, a number of IPOs have performed extremely well since listing, including:

ABUNDANT FPO (ASX: ABT)

Abundant is a micro-cap company that listed in April 2016 at an IPO price of 20 cents per share. Shortly after listing, the shares skyrocketed to a high of $1.01 per share but are now trading at 80 cents per share – still a massive gain of 300%!

The company operates in the agricultural sector and develops seeds to grow vegetables that produce better yields and are more drought, temperature and disease resistant.

Investors clearly see the company as having a competitive advantage in a lucrative market but it is important to remember that Abundant is yet to deliver its first result as a public company and is still a tiny player in a market dominated by a small number of global power-houses.

WiseTech Global Ltd (ASX: WTC)

The freight and logistics software company listed at an IPO price of $3.35 in April 2016 and has since surged 60% to $5.36 per share.

It appears WiseTech Global has already become a favourite stock amongst tech savvy investors and now boasts a market capitalisation of more than $1.5 billion. One of the main reasons investors really like the stock is because it has a key competitive advantage over other providers as it offers a single, integrated platform that enables key logistic transactions to be executed from one place.

The company currently has 19 of the top 20 global logistics service providers as customers, but investors should note the company only expects to post revenue of $135 million and net profit after tax (NPAT) of around $25 million in FY17.

This means investors buying the shares today will have to trust the company can deliver exceptionally strong growth for a number of years to come.

Afterpay Holdings Ltd (ASX: AFY)

Afterpay shares have taken a breather over the last few trading sessions but have still managed to rise by 115% from the May 2016 IPO listing price of $1 per share.

Afterpay is a technology-driven payments company that enables retail merchants to provide their customers with a ‘buy now, pay later’ service that does not require interest repayments from the end customer. This has, unsurprisingly, become popular amongst retail shoppers and the company has rapidly increased the number of retails merchants it operates with to more than 300.

Afterpay is showing encouraging signs of growth on a number of key metrics, but it is still unclear how this will translate into earnings and the price action over the last few days suggests investors should wait until the company releases its financial results next month before taking a stake in the company.

If you think the three stocks above might be a little too risky, why not consider these three blue chip shares instead?

Why These 3 Blue Chip Shares Are Set to Soar in 2016

Discover The Motley Fool's Top 3 blue chips for 2016. These 3 'new breed' shares pay fully franked dividends AND offer the prospect of significant capital appreciation. Simply click here to gain access to this comprehensive FREE investment report.

No credit card required!

HOT OFF THE PRESSES: Motley Fool’s #1 Dividend Pick for 2017!

With its shares up 155% in just the last five years, this ‘under the radar’ consumer favourite is both a hot growth stock AND our expert’s #1 dividend pick for 2017. Now we’re pulling back the curtain for you... And all you have to do to discover the name, code and a full analysis is enter your email below!

Simply enter your email now to receive your copy of our brand-new FREE report, “The Motley Fool’s Top Dividend Stock for 2017.”

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our https://www.fool.com.au/financial-services-guide">Financial Services Guide (FSG) for more information.

Motley Fool contributor Christopher Georges has no position in any stocks mentioned. The Motley Fool Australia owns shares of WiseTech Global. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.