Skip to main content

Yesterday Was Not A Good Day To Go Public

  • Author:
  • Updated:
    Original:

It was, however, a pretty good day to get in on the ground floor.

All five IPOs that priced on Wednesday had to slash their valuations in order to complete their offerings, as last week’s sell-off and concerns over market volatility forced companies to offer shares below their original ranges. Wednesday had the most IPOs price below their original range in a single day since June 9, 1998, when five of seven deals priced below their range. However, unlike the five June 9, 1998 deals, which showed lackluster returns across the board in their first day of trading (average loss of 2%), four of the five deals that cut their valuations on Wednesday produced positive returns (average gain of 5%) in their first day of trading…. Despite the strong returns, none of the companies that priced on Wednesday have traded up to their original ranges, indicating that, even with the market’s rebound this week, investors are still turned off by the original valuations proposed by these companies.

All five IPOs price below original range on Wednesday, most in one day since June 1998 [Renaissance Capital]

Related

NYSE tumbleweed

Biotech IPO Freeze Continues As Second Quarter Is Slowest In More Than A Decade

Summer weather is heating up but the market for IPOs remains cold.

SNAP.Stampede

Tom Farley's Greatest Act At NYSE Was Pranking Snap Into Going Public

It turns out that Evan Spiegel really wasn't told how the public markets work.

dumpster fire ornament

Worst Year In At Least A Century No Reason Not To Go Public

The SPAC-and-IPO party on Wall Street will have to stand in for the traditional holiday festivities this year.