BUZZ-Welcome back: High-profile US IPO listings return in 2023 after 18-month hiatus

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** 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))

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