Nothing has been spared during the Coronavirus crisis of 2020 and that includes IPOs that have already debuted. We wanted to take a look at how the 20 deals that have already gone public are faring versus the broader market.
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Overall, a total of 20 IPOs are trading at -17.5% versus an average gain of 19.3% at first trade and 20.1% at the close of day one.
The top five performing IPOs in the aftermarket versus issue price are:
- Schrodinger (SDGR) +72%
- 1Life Medical (ONEM) +45%
- Revolution Medicine (RVMD) +10%
- Arcutis Biopharm (ARQT) +7%
- Black Diamond Therapeutics (BDTX) -2%
The bottom five performing IPOs in the aftermarket versus issue price are:
- Casper Sleep (CSPR) -65%
- Velocity Financial (VEL) -62%
- OneWater Marine (ONEW) -53%
- LIZHI Inc (LIZI) -43%
- Passage Bio (PASG): -44%
With a broad market risk-off mentality currently in the market…it is not a surprise that increased volatility will be a root cause in IPOs . Money managers are quick to cut losers and get to cash as there are far more mature and seasoned companies that are trading at a discount.
But with that being said, the recent IPOs are flushed with cash (broadly speaking) which at least takes a smaller bit of risk off the table.
When will IPOs return? We believe if volatility subsides soon that the latter half of April could be a possibility. We tackled that issue yesterday.
Stay safe and healthy out there!
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