IPOs often lead the market in both directions. This week, they led it down.
AI infrastructure stocks got battered, leaving Anthropic and healthcare as Q4’s main stories:
Anthropic could file by next Friday if its reported November target holds, though the company is now also considering December. Its pre-IPO investor day revealed Q3 revenue of $16.8 billion with an 11% adj. operating margin. Its rumored valuation is now $1.5 trillion, down from $2 trillion.
Healthcare remains a bright spot, especially after a strong showing from this past week’s biotech IPOs. Oncology-focused Iambic Therapeutics (Nasdaq: IAM) finished the week up +49%, and siRNA developer City Therapeutics (Nasdaq: CTY) upsized its deal and rose +24%.
No major launches or new filings this week, as most issuers wait to get past the current volatility, the midterms, and the Anthropic IPO.
After a quiet week ahead for pricings, near-term IPO candidates include three recent biotech filers and two medical products companies. Several financial firms also appear IPO-ready.
Hot inflation data and an AI sell-off weighed on new stocks this week. The IPO Index fell -8.2% alongside a -1.9% loss for the S&P 500. Italian tech firm Bending Spoons was once again the winner, up +23.8% on an investment from existing shareholder Berkshire Hathaway. Geothermal developer Fervo Energy landed at the bottom of an AI infrastructure-heavy list of losers, off -29.6%.
Take care,
Bill Smith
CEO and Founder
Renaissance Capital
Weekly US IPO Winners & Losers
| Company | Ticker | Return |
|---|---|---|
| Bending Spoons | BSP | 23.8% |
| Arxis | ARXS | 13.0% |
| PACS Group | PACS | 8.3% |
| Navan | NAVN | 7.4% |
| Amer Sports | AS | 6.7% |
| Company | Ticker | Return |
|---|---|---|
| Fervo Energy | FRVO | -29.6% |
| CoreWeave | CRWV | -25.2% |
| X-Energy | XE | -24.4% |
| Cerebras Systems | CBRS | -22.5% |
| Forgent Power Solutions | FPS | -20.9% |
| Sector | Return |
|---|---|
| Consumer Discretionary | 2.7% |
| Real Estate | 1.5% |
| Consumer Staples | 0.2% |
| Health Care | -1.6% |
| Financials | -3.3% |
| Energy | -4.4% |
| Industrials | -6.8% |
| Technology | -6.8% |
| Utilities | -29.6% |
Renaissance IPO ETF (NYSE symbol: IPO) tracks the Renaissance IPO Index
The Renaissance IPO Index returned -8.2% last week vs. -1.9% for the S&P 500.
