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BUZZ-Welcome back: High-profile US IPO listings return in 2023 after 18-month hiatus
Dow Jones Industrial Average DJI | 44828.53 | +0.77% |
Klaviyo, Inc. KVYO | 33.91 | +3.23% |
CAVA Group Inc. CAVA | 86.52 | +4.61% |
S&P 500 index SPX | 6279.35 | +0.83% |
NASDAQ IXIC | 20601.10 | +1.02% |
** Newly-listed U.S. stocks of 2023 Arm Holdings ARM.O, Instacart CART.O and Klaviyo Inc KVYO.N have steadied after volatile post-debut trading that saw all three dip below their offer prices, sparking concerns of lackluster investor demand
** IPOs in the U.S. saw a nascent recovery this year as investors' risk appetite improved and market volatility eased but analysts and bankers have warned companies will need to lower their valuation expectations
** Chip designer Arm's shares have surged ~47% YTD, above its offer price of $51 on the Nasdaq in what was this year's biggest IPO in mid-September with a $65 billion valuation
** Grocery delivery app Instacart has sunk ~22%, including session's move, below its offer price, while marketing automation firm Klaviyo has fallen 7%
** Meanwhile, German sandal maker Birkenstock BIRK.N which had an underwhelming Wall Street debut, underlining caution over new listings in times of high interest rates, has also gained ~6.3% YTD, including session's move
** In a bright spot, shares of Mediterranean restaurant chain Cava CAVA.N were up about 89%, after opening nearly double the IPO price at $42 apiece on the NYSE in June
** Looking ahead, social media giant Reddit, cloud security company Rubrik and software startup ServiceTitan are among the marquee names expected to go public next year
Company |
IPO Offer Price |
First trade (Debut) |
Last closing price |
Performance YTD vs offer price |
---|---|---|---|---|
Arm |
$51 |
$56.10 |
$77.47 |
51.9% |
Instacart |
$30 |
$42 |
$23.84 |
-20.5% |
Birkenstock |
$46 |
$41 |
$49.5 |
7.6% |
Klaviyo |
$30 |
$36.75 |
$28.16 |
-6.1% |
Cava |
$22 |
$42 |
$44.63 |
102.9% |
(Reporting by Savyata Mishra and Manya Saini in Bengaluru)
((Savyata.Mishra@thomsonreuters.com))