So far, 2024 has been a mixed bag for high-profile IPOs.
The initial public offering (IPO) market weakened in 2022 and 2023, and Wall Street had hoped this year would bring about a turnaround. But as Bloomberg News reported on Sunday (Feb. 4), they were two of the three largest IPOs this year performed below average.
First there is Amer Sports, whose products include Wilson tennis rackets. The company raised $1.37 billion in its IPO, the largest U.S. IPO since October, but was priced at $13 per share, below the proposed range.
days before, BrightSpring Health Services Raised $693 million Sell stocks However, at the same time, prices are below the market range – and on the first day of trading they fell by 15%.
These debuts, the report argues, indicate a disconnect between what companies are offering and what investors want to support, a reversal in the way IPOs are supposed to work at a time when the Stock benchmarks are at historic highs.
“There is no doubt that the last deal has some knock-on effects, good or bad, that can impact the next deal and how you set your pricing expectations,” he said Gareth McCartney, global co-head of equity capital markets at UBS Group AG. “It can be a tactical and sentiment-driven market, so each deal impacts the next.”
The report added that some of these problems could be due to the mixed performance of IPOs last year. But Bloomberg says its data shows companies have raised $8.3 billion through 64 stock sales so far this year, a sign that activity has not completely stopped.
“Investors have the opportunity to be selective across all variables, but the good news is that they communicate early and often about what works for them.” Seth RubinHead of the equity capital markets department Stifel Financialsaid Bloomberg.
“We continue to rebuild – that recovery will take time and people are looking at everything on a deal-by-deal basis.”
This year, some big-name companies have considered IPOs, while others have canceled them. In the latter category: automobile manufacturers Renault Last week I said it was Cancel plans to take its electric vehicle business public, citing that “current stock market conditions” were not suitable for an IPO.
Now a social media platform Reddit is supposedly plan to go public in March, with potential investors which is pushing the company to target a $5 billion listing price.
For more information, see: Amer, Amer Sports, BrightSpring, BrightSpring Health Services, IPOs, Investors, IPO, News, Stock Listings, PYMNTS News, What's Hot
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