US IPO Weekly Winners & Losers

More wild swings in the IPO market, with a +6% surge on Tuesday erased on Friday. Still, the IPO Index notched a +1.5% gain for the week, in line with the S&P 500.

A tight jobs market means the Fed will likely continue its aggressive rate hikes, putting pressure on growth stocks. Meanwhile the global energy cartel OPEC+ plans to cut oil production to boost prices, which helps energy IPOs but hurts the broader market.

No deals launched, and aside from a small SPAC there were no listings either. Micro-caps are once again on the IPO calendar, set to price whenever they collect enough orders.

The IPO pipeline saw some movement, with updates from solar power producer MN8 Energy (NYSE: MNX) and digital ads distributor Aleph Group (NYSE: ALEF). And from our shadow backlog, cybersecurity play Arctic Wolf and encyclopedia brand Britannica signaled potential 2023 IPOs.

Elon Musk re-agreed to buy Twitter. Normally a $44 billion buyout for an unprofitable and slow-growing tech platform at ~8x sales would be great news for IPO candidates like Reddit and Discord, but there is nothing normal about the Twitter deal.

Stationary bike brand Peloton was the week’s IPO winner – a sentence I haven’t written in a while. Peloton was up +25.4% after announcing a partnership with Hilton, which aims to put at least one bike in each of its 5,400 US hotels by year-end. Three Chinese IPOs appeared near the bottom, but US life sciences supplier Maravai came in last, down -22.7% after an unexpected change in leadership.