The moribund market for initial public offerings was dealt another blow as Klaviyo Inc. joined a group of closely watched companies to slump below the price at which it sold millions of shares.
(Bloomberg) — The moribund market for initial public offerings was dealt another blow as Klaviyo Inc. joined a group of closely watched companies to slump below the price at which it sold millions of shares.
The Shopify Inc.-backed firm, which sells software to other businesses, joins chip designer Arm Holdings Plc, Instacart, and Birkenstock Holding Plc to close below their IPO prices as investors avoid risky assets amid geopolitical and macroeconomic uncertainty. Each of the September listings are down more than 26% from their intraday peaks while Birkenstock has never traded above its $46 offer price since debuting last week.
Klaviyo had been the lone holdout to tread above its $30 IPO price one month after a debut as micro concerns for each company paired with expectations for interest rates to remain higher for longer and two wars sapped investor appetite for risk. Wall Street had been banking on success for the four IPOs over the past six weeks to signal a revitalization of the dormant market.
(Updates share movement for closing prices)
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