NEW YORK, June 29 (Reuters Breakingviews) – The market for US IPOs is beginning to open up, but some trends are shaping up better than others. Shares in thrift chain store Savers Value Village (SVV.N) opened 38% above its IPO price on Thursday, despite two other new entrants, Fidelis Insurance (FIHL.N) and energy company Kodiak Gas Services (KGS.N). A frosty reception was awarded.
After trading above the given range and then continuing to climb, Savers Value was worth almost $4 billion in the first few hours of trading. It follows Cava (CAVA.N), the Mediterranean luncheon chain, which on Thursday was worth nearly double the $22 IPO price it set in mid-June. Meanwhile, Fidelis and Kodiak had to reduce their price range and both debuted below their opening price.
The divergence appears to be a simple economic bet on consumers doing better than expected as inflation eases and a feared US recession remains at bay, at least for now. Consumer staples is the only sector where new listings delivered double-digit positive returns in the second quarter, while healthcare, technology and energy were negative, according to Renaissance Capital. It’s not the sale of the century, but it’s a start. (By Jennifer Saba)
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Edited by John Foley and Sharon Lam
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