Two "vice" stocks are among the worst-performing IPOs of 2019.
Canadian cannabis producer Sundial Growers (SNDL) is down 82% from its IPO. Greenlane Holdings (GNLN), a national distributor of vape products, is down 84%.
See the full list of the year's best and worst performers in the 2019 US IPO Annual Review.
Excitement over Canada's legalization of recreational cannabis last year propelled Sundial competitor Tilray (TLRY) to become 2018's top-performing IPO, but by the time Sundial went public in August 2019, the industry was in free fall. Sundial managed to achieve an IPO market cap of more than $1 billion with virtually no historical revenue, before dropping 35% on its first day. It and other cannabis stocks continued to decline as the budding industry missed sales targets in Canada, and the battle for legalization in the US raged on.
Meanwhile, Greenlane suffered as the vaping industry faced its own regulatory battle. An outbreak of vaping illnesses and a spike in teen usage caused several states to restrict the sale of vaping products. Top supplier Juul removed its most popular flavors from retail shelves, and Greenlane's hyper growth expectations evaporated.
| Vice Stocks Get a Lump of Coal: Sundial Growers and Greenlane Holdings | ||
|---|---|---|
| Greenlane Holdings (GNLN) | Sundial Growers (SNDL) | |
| Offer Date | 4/17/19 | 7/31/19 |
| Deal Size | $102M | $143M |
| Market Cap at IPO | $713M | $1,686M |
| First Day Return | 24% | -35% |
| Return from IPO as of 12/23 | -84% | -82% |
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Both companies were highlighted in Renaissance Capital’s US IPO Annual Review, our detailed report on the 2019 IPO market. Download a free Preview of our Annual Review, or sign up for a free 7-day trial of IPO Pro to view the full report.
