US IPO Weekly Winners & Losers

“After about 18 months of historically low activity, the US IPO market is finally poised to accelerate heading into the fall.”

That’s the first line of our newly-released Fall 2023 US IPO Preview, a deep dive into what we expect IPO activity will look like in the coming months. Our first prediction: Arm (Nasdaq: ARM) breaks the tech logjam.

The semiconductor giant is expected to launch its roadshow on Tuesday, with pricing rumored for the following week. The deal is going to be big. And not just because it should be one of the largest tech IPOs of the past two decades.

Arm’s offering will be an important test of market sentiment, especially for the big tech names that were sidelined by last year’s sell-off. Assuming the deal does well, and returns from the year’s other large issuers hold up, it should spark a pickup through the rest of the year.

Large recent filers are the best candidates to follow in the coming weeks, particularly tech names Instacart (Nasdaq: CART) and Klaviyo (NYSE: KVYO). Beyond those, both the public and private pipelines are teeming with solid prospects. We expect several YTD themes to carry into the fall, like IPOs from biotechs, consumer brands, and energy companies.

The IPO Index climbed +5.2% this week, outpacing the S&P 500’s +2.5% gain. Chinese real estate company KE Holdings was the week’s winner, soaring +29.2% on strong 2Q earnings. Web development platform DigitalOcean traded off -7.3%.