Proactive Investors - Initial public offering (IPO) activity in the United States remained subdued in 2023 despite improved market sentiment.
However, September saw several high-profile debuts by technology firms Arm Holdings PLC (NASDAQ:ARM) and Instacart (NASDAQ:CART) which reignited the IPO market, temporarily at least.
Take a look back at some of the top IPOs of the year:
Kenvue (NYSE:KVUE)
Kenvue, Johnson & Johnson (NYSE:JNJ)'s consumer health company whose brands include Band-Aid and Listerine, was spun off into an independent company this year. It listed on the New York Stock Exchange in May for $22 per share, pointing to a valuation of $47 billion.
It officially completed its separation from J&J on August 23.
In August, the stock was added to the S&P 500 index, replacing Advance Auto Parts.
According to Fortune, Kenvue’s $4.37 billion debut was the largest this year and the company alone has accounted for more than $4 out of every $10 raised on United States exchanges in 2023.
- Gain/loss since debut: down 2% to $21.55 per share
- Market capitalization: $41.26 billion
CAVA Group Inc (NYSE:CAVA)
Mediterranean restaurant chain Cava surprised when shortly before its June IPO it raised its target valuation from $1.5 billion to $2.45 billion, pricing its shares at $22 up from its prior range of $19 to $20.
Shares opened at about $42 per share and closed at $43.78, giving Cava a market valuation of $4.88 billion.
With the stock still trading at more than double its IPO price in late December, Cava’s debut was a bright spot when it comes to IPOs on United States exchanges this year.
- Gain/loss since debut: up 102.7% to $44.61
- Market capitalization: $5.06 billion
Oddity Tech (NASDAQ:ODD)
In July, beauty technology company Oddity earned a market valuation of about $2.7 billion after its stock market debut.
Shares of the company which were priced at $35 finished their first trading day about 35% higher at $47.53.
The company and its shareholders, including private equity firm L Catterton, raised about $424 million in the offering.
- Gain/loss since debut: up 39.2% at $48.71
- Market capitalization: $2.77 billion
VinFast Auto (NASDAQ:VFS)
Vietnamese electric vehicle maker VinFast Auto Ltd (NASDAQ:VFS) debuted on the Nasdaq in mid-August through a merger with a special purpose acquisition company (SPAC).
Its stock opened at $22, more than double the $10 per share agreed to with its SPAC partner Black Spade Acquisition , and closed at about $37 valuing the company at about $85 million.
After this initial spike, however, investors pulled back on the stock sending it below its IPO price of $10 by October.
- Gain/loss since debut: down 15.5% at $8.45
- Market capitalization: $19.72 billion
ARM Holdings (LON:ARM)
The debut of British chip designer ARM Holdings on the Nasdaq Select Market on August 21 was seen by investors as a major signal that the IPO market was ramping back up following a listings slump.
The company was taken private by Japanese investment firm SoftBank in 2016 for $32 billion, which was followed by a failed $40 billion acquisition by Nvidia Corporation (NASDAQ:NVDA) in 2020 due to antitrust regulatory opposition.
Its shares debuted on September 14 at $51, rising to above $60 that day, and have continued to make gains in the months since.
- Gain/loss since debut: up 52.1% to $77.58
- Market capitalization: $79.5 billion
Instacart (NASDAQ:CART)
The same week that ARM listed, grocery technology company Instacart (NASDAQ:CART) also saw a successful debut with its shares rising as much as 43% to close 12% higher.
Instacart (NASDAQ:CART)’s shares kicked off trading at $30, the upper end of its anticipated range, and closed above $33.
The company debuted at a valuation of about $10 billion, a fraction of its estimated $39 billion worth in 2021 amid higher demand for online grocery deliveries during the pandemic.
- Gain/loss since debut: down 19.8% at $24.05
- Market capitalization: $6.74 billion
Klaviyo (NYSE:KVYO)
The third tech company to list in a fortnight, after ARM and Instacart, marketing automation firm Klaviyo saw its shares gain about 32% on its first day of trading.
Its shares debuted at $30, up from its previously announced range of $27 to $29 per share and securing it a valuation of $9.2 billion, and finished their first trading day up 9% at $32.76.
- Gain/loss since debut: down 6% at $28.19
- Market capitalization: $7.3 billion
RayzeBio (NASDAQ:RYZB)
Also making its debut in September was radiopharmaceutical company RayzeBio which shortly before its IPO upsized its offering.
It raised $358 million before deducting expenses, above its prior expectation of bringing in about $210 million, with its shares debuting at $18 per share.
It marks one of the biggest biotechnology debuts of the year, along with Neumora’s IPO which grossed $250 million a day after RayzeBio’s listing.
It is the second largest after Acelyrin raised $540 million in May.
Shares of the company spiked in late December when it was revealed that RayzeBio would be acquired by Bristol-Myers Squibb (NYSE:BMY) Co (NYSE:BMY, ETR:RM, OTC:BMYMP) for $4.1 billion.
- Gain/loss since debut: up 242.8% at $61.71
- Market capitalization: $3.7 billion
Birkenstock (NYSE:BIRK)
German sandal maker Birkenstock listed its shares in the United States in October, with the stock debuting 11% below its IPO price at $41 and finishing its first trading day at about $40.
Its shares had been priced at $46, at the midpoint of the company’s expected range of $44 to $49.
Within days the stock had fallen below $36 but has since recovered to above its IPO price amid a broader equities rally during the holiday period.
- Gain/loss since debut: up 7.6% at $49.51
- Market capitalization: $9.32 billion
IPOs to watch out for in 2024
Several prominent companies are expected to make their stock market debuts in the new year, some after years of speculation about them going public.
Shein
Fast-fashion company Shein is reportedly planning to list its stock in the United States in 2024 and is thought to be targeting up to a $90 billion debut.
The company was last valued at $66 billion.
It would be the biggest China-founded company to debut in the United States since Didi Global listed with a $68 billion valuation in 2021.
Goldman Sachs (NYSE:NYSE:GS), JPMorgan Chase & Co (NYSE:NYSE:JPM) and Morgan Stanley (NYSE:NYSE:MS) have been hired as lead underwriters for the IPO, according to media reports.
Skims
Kim Kardashian’s shapewear brand Skims, valued at $4 million, is also reportedly mulling an IPO.
The company’s co-founder, Swedish entrepreneur Jens Grede, has hinted that a stock market debut is forthcoming after Skims secured $270 million in funding earlier this year. It has raised $670 million over the last four years.
Another sign the company is preparing to go public is its decision to hire former Nike (NYSE:NKE) executive Andy Muir as its chief financial officer.
Stripe
Irish-American payments solutions firm Stripe continued to delay its long-awaited float in 2023 but may finally take the plunge in 2024 as market sentiment improves.
The company was last valued at $50 billion following a $6.5 billion fundraising in March, a far cry from its peak valuation of $95 billion in March 2021.
Databricks
After raising more than $500 million during a fundraising round in September and more than $4 billion from private investors to date, artificial intelligence and analytics firm Databricks is another prime IPO candidate.
The timing of an IPO is uncertain, with CEO Ali Ghodsi commenting “An IPO will be a milestone, but we’re focused on satisfying the intense demand from customers and ensuring their long-term success.”
After originally filing for an IPO in December 2021, social media platform Reddit's long-awaited public offering may finally occur in the new year following reports it is in talks with potential investors.
The IPO could reportedly be as early as the first quarter of 2024.
According to paperwork filed last year, Reddit is valued at $15 billion.
Panera Breads
Panera Bread (NASDAQ:PNRA) is seeking to go public again in 2024, according to media reports.
The restaurant chain, known for its bread, soups and sandwiches, has reportedly confidentially filed for the IPO after it was taken private by JAB Holdings in 2017 for $7.5 billion.
JPMorgan Chase has reportedly been hired as the lead underwriter for the IPO.
In May, Panera Bread unveiled a leadership changeup “in preparation for its eventual IPO.”