US IPO Weekly Winners & Losers

The classic IPO trading pattern plays out again. After leading on the way down, IPOs now lead the rebound. Over the past 3 months, the IPO market has enjoyed a +28% gain, about triple that of the S&P 500.

As a reminder, we use our IPO Index as a proxy for the US IPO market. The index is tracked by our IPO ETF (symbol: IPO).

Macro forces like inflation and GDP could still end the party early. But the tone of the market has improved. July inflation was better than expected. The VIX Volatility Index fell below 20 for the first time in 4 months. Follow-on offerings have risen.

All that signals a pickup in IPO activity in the Fall. News hit this week that AIG spinoff Corebridge Financial (NYSE: CRBG) plans to list next month in the year’s largest IPO to date.

So far 2022 has been the "year of the micro-cap IPO," and four more priced this week. They include coffee retail, housing rental, electric boats, and Malaysian fintech. Many of these small deals continue to show “pop-and-drop” trading.

This week the IPO market rose +1.6%, and the S&P 500 gained +3.3%. The IPO winners were again mostly software, but the top spot went to US chip maker GlobalFoundries, up +22.3% as the US passed a law to boost chip production. Digital payments co. Marqeta fell -19.5% after it cut guidance.