It looks like tech IPOs should be back on the menu in 2025.
ServiceTitan (Nasdaq: TTAN) listed on Thursday after raising $625 million in its offering. The software provider raised the range by 18% at the high end, the largest increase we’ve seen in about three years, then priced $4 above that. The company popped +42% on day one.
This is the latest green light for the massive backlog of private tech unicorns, which have struggled to make a full-fledged comeback.
The demand is there; ServiceTitan’s debut is one of several successful VC-backed tech IPOs this year. It comes back to valuation. But it seems like we’re reaching a point of equilibrium, where valuation multiples are high enough to appeal to issuers, but not so high that they turn off investors.
It’s this sweet spot that gives us reason to believe the long-awaited IPO pickup is finally around the corner. Don’t expect any other major US listings until next year, though.
There was one other notable deal this week. Australia-listed medical device maker Anteris (Nasdaq: AVR) raised $89 million and traded down -7%.
The IPO Index shed -1.4% this week, compared to -0.6% for the S&P 500. Data platform Rubrik led the winners, up +11.7% on strong Q3 results, while precision medicine company Tempus AI fell -18.7%.
Take care,
Bill Smith
CEO and Founder
Renaissance Capital
|
Biggest price changes through
Dec 13th
in the
Renaissance IPO Index
|
||
|---|---|---|
| Top 5 | ||
| Rubrik | RBRK | 11.7% |
| Amer Sports | AS | 10.6% |
| Rivian Automotive | RIVN | 10.5% |
| Astera Labs | ALAB | 9.8% |
| Arm Holdings | ARM | 7.8% |
| Bottom 5 | ||
| Tempus AI | TEM | -18.7% |
| CAVA Group | CAVA | -17.8% |
| Loar Holdings | LOAR | -14.0% |
| GitLab | GTLB | -12.8% |
| Bausch + Lomb | BLCO | -7.3% |
| Sectors | ||
| Consumer Discretionary | 1.7% | |
| Technology | 0.8% | |
| Real Estate | -0.2% | |
| Consumer Staples | -2.8% | |
| Financials | -2.8% | |
| Industrials | -4.9% | |
| Health Care | -8.9% | |
Renaissance IPO ETF (NYSE symbol: IPO) tracks the Renaissance IPO Index
The Renaissance IPO Index returned -1.4% last week vs. -0.6% for the S&P 500.
