US IPO Weekly Winners & Losers

Another week with a lot more IPO winners than losers.

The IPO market jumped +4.4%, beating the S&P 500’s +1.4% as the Fed all but guaranteed a September rate cut. Our index of New Stocks is back at a double-digit gain for the year (+11.6%).

Two consumer names led the pack thanks to strong earnings, with fast-growing Mediterranean restaurant CAVA Group up +23.3%, and sporting goods and apparel maker Amer Sports up +23.2%. Last week’s winner, high-flying plane parts supplier Loar Holdings, gave back -6.4%.

The IPO market is now in a very solid position for deal activity in the fall, based on both the dramatic recovery we see in the IPO Index chart, as well as the performance of the year's 10-largest deals:

All that's missing are the IPO filings. We don't expect the floodgates to open after Labor Day, since some companies delayed to 2025, and others pushed back from September to October. But there should be a noticeable pickup. This week four sizable IPOs filed, three biotechs and a pre-revenue potash miner in Brazil. In addition to a biotech resurgence, S-1 updates suggest more energy deals in the fall.

This week Chinese robotaxi company WeRide (Nasdaq: WRD) postponed what would have been the first sizable IPO in a month. Its US IPO now appears stuck in neutral. WeRide was a rare deal, both for its mid-August timing, and the fact that China's tech industry has stayed away from US markets since the country's crackdown in 2021. It probably wasn’t a lack of demand, since WeRide mostly pre-sold the offering before launch. Instead, it looks like the deal was bogged down by regulatory hurdles that popped up from both the US and China.

Two very small IPOs from China did list on the Nasdaq this week: a B2B company focused on the logistics industry (RITR) and a producer of disposable medical products (WOK).