US IPO Weekly Winners & Losers

There are two somewhat contradictory ways of framing the IPO market in 2024.

1. 2024 is the year the IPO market reopened. IPO proceeds are double this point last year. Unprofitable tech unicorns returned to market. IPOs traded up. We've had big names like Reddit, Viking, Wilson (Amer Sports), and the largest-ever REIT IPO Lineage. Record VC investments in AI have created a new pipeline of disruptive IPO candidates.

2. 2024 disappointed. We'll be lucky to crack $35B in IPO proceeds, whereas ~$45B has been the norm over the last two decades. Companies expected more enthusiastic investors, and investors expected better deals. Dozens of pre-IPO startups kicked the can to next year, just like they did last year. The IPO Index is positive but trails the S&P 500 year-to-date.

We tend to take the optimistic view. Momentum is building, gradually, and interest rate cuts are in clear view. 2025 will likely be a bigger year than 2024. And while it’s not always reported this way, it’s a good thing that IPO investors refuse to overpay.

After a market rout on Monday, new stocks stabilized and the IPO Index rebounded +2.7% for the week, while the S&P 500 ended flat. Marketing software company Klaviyo was the week's winner, up +30.0%, while to-go coffee shop Dutch Bros dropped -21.2%. The IPO market recorded its best day in six months on Thursday, a good reminder that upswings can happen suddenly.

As expected, there were no major IPOs this week. Two SPACs priced (EQVU, VACHU) and several filed, amid a mini revival in the blank check space.

Just one sizable deal is scheduled for the week ahead as the August lull stretches on. Chinese autonomous driving company WeRide (Nasdaq: WRD) is raising about $420 million including private placements, in a mostly pre-bought deal. After next week, we should see a pickup in filings and get a sense of September activity.