![]() ![]() One standout among recent big IPOs is chipmaker GlobalFoundries (GFS.O), which has gained 23% since its 2021 listing, compared to the S&P 500's 3% dip over that time. They are down on average 29% from their offering prices and down 49% from their initial trading highs. In the past four years, over 260 IPOs have debuted with stock market values above $1 billion, mostly in the technology, healthcare and consumer discretionary sectors, according to LSEG. But studies by Ritter and others have shown IPOs offer poor returns. 'But That's None of My Business' is a sarcastic expression used as a postscript to an insult or disrespectful remark said towards a specific individual or group. recession, have crushed valuations of companies that went public before they were profitable. Wall Street's steep sell-off in 2022, along with rising interest rates and fears of a potential U.S. To be sure, it has been a tough few years for IPOs. Also among the biggest IPOs in recent years, food delivery company DoorDash's (DASH.N) stock remains down by more than half from its intraday high on its December 2020 debut. CRUSHED VALUATIONSĪrm is seeking up to $51 per share, potentially valuing it at more than $50 billion - the most valuable company to list in New York since electric carmaker Rivian Automotive (RIVN.O) debuted in 2021.īurning through cash to ramp up production, Rivian's market value has collapsed by over $60 billion since it listed. Spokespeople for Instacart and the 10 companies whose IPOs were analyzed did not provide comment, or did not respond to comment requests. Spokespeople for Arm and SoFi declined to comment. "Whatever comes out of the Arm IPO, you'll see niches of the retail community trying to get in on it, but it's not going to be at the levels we saw in some of the IPOs in 2021," he said. stocks surged in 2021, fueled by low interest rates, zero-cost trading apps, and social media hype around GameStop and other so-called meme stocks.īut Main Street investors have become more cautious after last year's stock market sell-off, said Marco Iachini, a senior vice president at Vanda Research, which tracks retail trades. We at RVCJ showed some creativity and have come up with some brilliant memes on the same. Nvidia (NVDA.O), the chipmaker at the center of an artificial intelligence boom, has been a retail favorite this year. This is a subtle yet a meaningful dialogue and can be associated with many situations of our daily lives. While Arm is a business-to-business company with little consumer brand recognition, its IPO publicity is likely to attract retail interest, said analysts. On Monday, SoFi notified customers it would be offering a "limited number of shares" in the Arm IPO too. Instacart will be offering some retail investors a chance to buy into its IPO via underwriter fintech company SoFi, its prospectus said. "For almost all retail investors, buying and holding a low-cost index fund is the best strategy."Īrm's debut and an upcoming listing from grocery delivery service Instacart are expected to rejuvenate a lackluster IPO market which has slowed over the past two years due to volatility and economic uncertainty. "If you're buying in the market, on average, you're buying at a premium to the offer price," said Jay Ritter, a professor at the University of Florida who studies IPOs.
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