Public investors were not holding Ruhnn Holding (RUHN).
After raising $125 million by pricing at the $12.50 midpoint, Ruhnn fell 37% on Wednesday. Its market cap dropped from $1.0 billion to $649 million. Ruhnn had the worst first-day return for a tech IPO in over 20 years. It was also the worst US debut for a Chinese issuer during the same period.
In the past 20 years, only two IPOs have had worse first-day losses, toy maker Funko (FNKO) in 2017 (-41% on its first day) and financial services provider eChapman.com in 2000 (-43%).
On average, Chinese issuers have averaged a 14% first-day return on US exchanges over the past 10 years, roughly in line with all US IPOs.
China's largest "incubator" of e-commerce sites for online influencers, Ruhnn Holding faced several headwinds at IPO (detail available on IPO Pro and IPO Intelligence). Our IPO poll takers had also rated this deal lower than any other on the calendar. The poll is accessible on our site here, but only IPO Pro subscribers get the vote breakdown, as seen below:
