PishPosh, a small baby products store that wanted to list under the ticker BABY, had to delay its IPO due to low demand because it was rare for a stock not to start trading on the day it was scheduled to debut.
At around 3:38 p.m. ET Wednesday, Nasdaq said in an advisory that the IPO had been “voluntarily postponed at the direction of the underwriter,” adding that all Nasdaq systems were operating normally. Stocks in an IPO often start trading in the morning or early afternoon.
Boustead Securities was the lead underwriter for the IPO, according to a securities filing.
New Jersey-based PishPosh announced Wednesday morning that it valued its shares at $5 in its IPO, with approximately 1.82 million common shares expected to bring $9.1 million for the company.
However, the demand for the stock was not enough for the shares to trade at this price. According to a person familiar with the case who told The Wall Street Journal, the indicative price in the opening auction — an estimate where the stock trades based on demand from buyers and sellers — remained well below 5 in the hours leading up to the deal US Dollar has been withdrawn.
PishPosh is another story in the declining IPO market. The number of companies filing for an IPO in 2022 fell by almost half from the previous year’s record pace.
In 2022, 1,671 IPOs were completed worldwide, compared to 3,260 in 2021. According to statistics from S&P Global Market Intelligence, the total amount of these IPOs fell to $179.73 billion in 2022, compared to $626.56 billion in 2021. Poor stock performance in 2022, aggressive central bank rate hikes and fears of a global recession stifled activity in public markets.
In the fourth quarter of 2022, 404 IPOs were conducted worldwide, almost as many as in the previous two quarters. The value of the offerings totaled $35.70 billion, the lowest amount offered since the first quarter of 2019, when 265 IPOs totaled $18.90 billion.
This compares to 916 initial public offerings valued at $150.28 billion in the fourth quarter of 2021.
IPO activity in the US contributed much of the market slowdown. In the fourth quarter of 2022, twenty IPOs totaling $3.02 billion were launched in the United States. This compares to 234 IPOs totaling $65.44 billion in the same quarter last year.
For the full year, there were 149 IPOs in the United States in 2022 with a total volume of $20.79 billion, compared to 908 IPOs in 2021 with a total volume of $282.66 billion.
Information for this briefing was obtained from The Wall Street Journal, SPGlobal and the sources cited. The author has no securities or affiliations with this organization. No buy or sell recommendation. Always conduct additional research and consult a professional before purchasing any security. The author does not own any licenses.
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