And now the IPO window is shut again. The biggest nine IPOs of 2023.
By Wolf Richter for WOLF STREET.
Today was another rough day for the biggest IPO stocks that went public in 2023. It has been a lousy time to invest in IPOs for a while.
Here are the nine biggest IPOs of 2023 in terms of the valuation at the IPO price. Some are older companies that had gotten bought a few years ago by SoftBank, private equity firms, and hedge funds to be sold to the public at a huge premium. There is J&J’s spinoff. Only a few of them are startups.
- Four of them had their high on the first or second day of trading and have dropped a bunch since then.
- One of them topped out at the IPO price itself – the price at which institutions, including your broker, buy the shares before they start trading – and the shares never publicly traded that high.
- Six of the nine have dropped by over 30% from their intraday high or IPO price.
- Four of those have plunged by 41% to 48% from their high; investors got shookalacked.
Companies can only be sold to the public at these sky-high valuations and then get pumped further when exuberance drives the market. Sobriety kills the IPO market, which happened in 2022, and the IPO window closed as countless stocks that had gone public via classic IPO or via merger with a SPAC collapsed. The IPO window stayed closed through the second half of 2023.
But then the blistering rally this year through July re-opened the IPO window, and a bunch of big IPOs were sent flying out. Since early August, stocks have started to sag again, and the big IPOs that had flown out the window plunged, and now the IPO window is shut again.
The biggest nine IPOs of 2023, reverse chronological order, most recent IPOs first.
They had a valuation of at least $2.5 billion at the IPO price. None of them have made it yet into my pantheon of Imploded Stocks; to get into it, they must drop by over 70% from the high. (All stock data below, except IPO prices, via YCharts.)
And to clarify: These are classic IPOs; they’re not mergers with a SPAC, such as EV maker VinFast, which has collapsed by over 92% from its high on August 25 shortly after going public.
Birkenstock [BIRK], IPO on October 11, at the IPO price of $46, giving it a valuation of $7.5 billion.
- Today: -5.5% to $39.90
- From high: -13.3%
- Date of high: Oct 11, IPO price, never publicly traded at that price.
This 250-year-old German shoemaker had been a family-owned business. In 2021, the family sold most of it to private equity firm L Catterton (backed by one of the richest people in the world, Bernard Arnault). A Birkenstock family member retained a minority stake.
Klaviyo [KVYO], IPO on September 20, at the IPO price of $30, giving it a valuation of $9 billion.
- Today: -9.5% to $24.93
- From high: -28.2%
- Date of high: Sep 20, intraday high first day of trading.
The company provides marketing software and is part-owned by Shopify, which is a the major client.
Instacart (Maplebear Inc) [CART], IPO on September 19, at the IPO price of $30, giving it a valuation of $10 billion.
- Today: -10.1% to $24.48
- From high: -43.0%
- Date of high: Sep 19, intraday high on first day of trading.
The company provides an app and service where gig workers go to the store for you and buy the stuff on your list and deliver it to you. VC-backed, largest shareholders: VC firm Sequoia and hedge fund D1 Capital Partners.
Neumora Therapeutics [NMRA], IPO on September 15, at the IPO price of $17, giving it a valuation of $2.7 billion.
- Today: -0.3% to $10.60
- From high: -41.1%
- Date of high: Sep 15, intraday high on first day of trading.
The largest investors include Amgen, SoftBank, and Arch Venture Partners.
Arm [ARM], IPO on September 14, at the IPO price $51, for a valuation of $54.5 billion. Since Arm is a foreign company, this is not a stock but an American depositary receipt (ADR).
- Today: -5.2% to $51.58
- From high: -25.8%
- Date of high: Sep 15, second day of trading.
Founded in 1990, acquired by SoftBank in 2016 for $32 billion. SoftBank still owns a majority stake; other major shareholders include Apple, Alphabet, Nvidia, AMD, and Samsung.
Savers Value Village [SVV], IPO on June 19, at the IPO price of $18, for a valuation of $2.7 billion.
- Today: -8.3% to $13.79
- From high: -48.4%
- Date of high: Aug 24.
Thrift-store chain founded in 1954. In 2019, with the company approaching bankruptcy, its owners, PE firms Leonard Green and TPG (which had bought it in 2012), sold it to PE firms Ares Management and Crescent Capital with a restructuring agreement.
Cava [CAVA], IPO on June 12, at the IPO price of $22, for a valuation of $2.5 billion.
- Today: +1.4% to $31.53
- From high: -46.2%
- Date of high: Aug 2.
US Chain of Mediterranean restaurants, founded in 2010.
Kenvue [KVUE], IPO on May 4, at the IPO price of $22, giving it a valuation of $41 billion.
- Today: +0.6% to $19.22
- From high: -31.2%
- Date of high: May 15.
Johnson & Johnson’s spinoff of its consumer healthcare division (Band-Aid, Tylenol, etc.). J&J had a 9.5% stake after the IPO.
Nextracker [NXT], IPO on February 9, at the IPO price of $24, for a valuation of $3.5 billion.
- Today: -4.2% to $33.98
- From high: -25.6%
- Date of high: Jul 28.
Founded in 2013, provides solar tracking software. PE firm TPG owned a 28% after the IPO.
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