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CTV News
2 days ago
- Business
- CTV News
Hot or not? How recent high-profile U.S. IPOs have performed
A bull sculpture is displayed outside the New York Stock Exchange for the expected Circle IPO (AP Photo/Richard Drew) Digital bank Chime's debut is expected to add more firepower to a recovering IPO market after a string of blockbuster listings in the last few months. While the strong performance of recent listings like Circle, CoreWeave and eToro has boosted confidence, analysts say macroeconomic uncertainty and tariff-related risks could still make both investors and issuers more selective. 'Chime could absolutely have a major ripple effect, as many private companies are watching this closely, not just for valuation, but also for secondary market liquidity, demand depth, and overall investor appetite,' said Kat Liu, vice president at IPOX. Below is a look at how some of the biggest IPOs in recent years have performed: CIRCLE INTERNET CRCL.N: The stablecoin issuer raised $1.05 billion in an upsized IPO earlier in June, debuting with a valuation of nearly $18 billion on a fully diluted basis. Its shares more than doubled on day one, closing about 168 per cent above the IPO price. The stock is trading 70 per cent above its price at open. ETORO ETOR.O: Robinhood-rival eToro ETOR.O secured a valuation of $5.64 billion after its shares surged 34 per cent in their Nasdaq debut in May. The stock and cryptocurrency trading platform raised $620 million in an upsized IPO. Its stock has declined 10 per cent since the debut. COREWEAVE CRWV.O: The AI cloud firm's Nasdaq debut was muted in March, but the stock has jumped nearly four-fold despite opening nearly 3 per cent below its offer price. The Nvidia NVDA.O-backed company raised about $1.5 billion in its IPO for a valuation of about $23 billion on a fully diluted basis. VENTURE GLOBAL LNG VG.N: The liquefied natural gas exporter raised $1.75 billion in its offering in January, settling for nearly half the valuation it had aimed for earlier. The company's shares opened nearly 4 per cent below their IPO price in a subdued NYSE debut. They have plunged around 30% since then. SAILPOINT SAIL.O: The Thoma Bravo-backed identity security company's shares traded flat in their Nasdaq debut, valuing it at $12.8 billion. The stock has since lost nearly 2 per cent. The Austin, Texas-based company raised $1.38 billion in an upsized IPO. ARM HOLDINGS ARM.O: The chip designer raised $4.87 billion in its offering in September 2023, valuing it at $54.5 billion. It had sought a valuation of as much as $52 billion. The company's shares rose 10 per cent at the open. The stock has more than doubled since then. INSTACART CART.O: The San Francisco-based company, which is incorporated as Maplebear, was priced at the top end of the marketed range in its IPO. It raised $660 million at a nearly $9.9 billion valuation in September 2023. It had hiked its proposed price range and targeted a valuation of up to $10 billion. The grocery delivery app's stock popped 40% at the open and hassince gained about 5 per cent. VIKING HOLDINGS VIK.N: The cruise operator's IPO raised $1.54 billion in April last year, valuing it at $10.35 billion. It had sought a valuation of as much as $10.8 billion in the offering. Viking's shares opened 9% above their offer price and have surged 80 per cent since. STANDARDAERO SARO.N: The aircraft maintenance services provider notched a valuation of roughly $8 billion after pricing its offering above range to raise $1.44 billion in October last year. It had initially targeted a valuation of up to $7.69 billion. The Carlyle-backed company's shares began trading 29% above the offer price. They have since lost around 1 per cent. LINEAGE LINE.O: The cold storage real estate investment trust raised $4.45 billion in its listing in July 2024, at a valuation of more than $18 billion. It had aimed for a valuation as high as $19.16 billion. The company's stock gained 5 per cent in its Nasdaq debut at the open. However, it has fallen 45 per cent below its price at open. REDDIT RDDT.N: The social media giant fetched $748 million in its IPO in March last year, which valued it at $6.4 billion — the top end of the target range at which it had advertised. Its stock opened 38 per cent above the offer price, and has more than doubled since. BIRKENSTOCK BIRK.N: The 250-year-old German sandal maker raised $1.48 billion and was valued at $9.3 billion in its IPO in October 2023, slightly lower than its target of $10 billion. Its shares debuted 11% below their IPO price but have risen 32 per cent since. (Reporting by Manya Saini and Niket Nishant in Bengaluru; Additional reporting by Ateev Bhandari; Editing by Krishna Chandra Eluri and Anil D'Silva)
Reuters
2 days ago
- Business
- Reuters
Chime set for long-awaited market debut after $864 million US IPO
June 12 (Reuters) - Chime is set to debut on the Nasdaq later on Thursday after raising $864 million in its initial public offering, with investors waiting to see whether the digital bank will maintain the recent streak of explosive first-day gains for new listings. The hotly anticipated debut is being viewed as a bellwether for other IPO candidates in the fintech industry, where valuations have cooled from pandemic-era highs. "A strong debut could trigger a domino effect, prompting other high-growth firms to accelerate their IPO timelines and position themselves for a window that's starting to reopen," said Kat Liu, vice president at IPOX. "If well-received, Chime could help reopen the IPO window for other long-delayed unicorns." Chime and some of its investors sold 32 million shares priced at $27 each. It had earlier marketed a $24 to $26 price range. The IPO gave the San Francisco-based company a fully diluted valuation of $11.6 billion. It was last valued at $25 billion after a funding round in August 2021. Chime's major backers include Yuri Milner's DST Global and investment firms General Atlantic and ICONIQ. It has raised $2.65 billion from private investors since its inception, according to PitchBook data. Digital banks such as Chime have grown rapidly in recent years by offering low-cost, mobile-first financial services that appeal to younger users and underserved consumers. With features such as no-fee accounts, early access to direct deposits and user-friendly apps, they have positioned themselves as accessible alternatives to traditional banks. The fintech earns revenue primarily from interchange fees collected when users swipe their debit cards. Morgan Stanley, Goldman Sachs and J.P. Morgan were the lead underwriters for Chime's IPO. Soaring interest rates and recession fears since the 2021 IPO boom have hit valuations and investor demand for new issues, forcing many private companies to delay their IPO plans. But some high-growth firms are cautiously testing the waters again. Circle (CRCL.N), opens new tab, the stablecoin issuer that went public last week, has seen its stock gain fourfold from its IPO price. Space tech firm Voyager's (VOYG.N), opens new tab shares more than doubled on their debut on Wednesday. However, some analysts cautioned against excessive optimism, warning that uncertainty around trade negotiations by President Donald Trump's administration could weigh on the broader recovery. "While this is clearly a strong IPO window now, there is no guarantee it will continue," said Samuel Kerr, head of equity capital markets at Mergermarket. "Investors and issuers have made use of the tariff pause to do deals but there is still broad uncertainty." Crypto exchange Gemini, buy-now-pay-later firm Klarna, AI chipmaker Cerebras and medical supplies company Medline are among the most closely watched names in the current IPO pipeline.
