The IPO Market’s Winners and Losers Last Week – September 25, 2022

The IPO market had the wind knocked out of it this week. The IPO Index fell -9.1%, compared to the S&P 500’s loss of -4.6%. Both indexes are once again near their 2022 lows. I can’t say when the IPO market will bottom out, but I do know we’re closer to the bottom now.

Growth stocks took the brunt of the hit when the Fed raised interest rates by another 75 basis points, as the US central bank appears willing to fight inflation regardless of the economic damage. Meanwhile, Russia is reminding the world that it has nukes.

One micro-cap priced an IPO this week. B2B TV box provider?Loop Media (NYSE: LPTV)?raised $12 million in its uplisting to the NYSE American, and finished the week below issue. Micro-caps have been a key source of deal flow this year, but rumor has it the Nasdaq is slowing its approval process to address the “pop-and-drop” trading we’ve seen.

Porsche’s IPO in Frankfurt will dominate global IPO headlines this week – be sure to follow our?International Winners & Losers newsletter?for updates. While it won't trade in the US, Porsche may eventually list on the OTC Markets, similar to parent Volkswagen.

Genetic products provider Maravai Lifesciences took the top spot this week with a +10.8% gain, while lab sterilization firm Sotera Health plummeted -50.2% after a major legal defeat related to plant emissions, with more lawsuits pending.

Talk soon,

Bill

William K. Smith

CEO and Co-Founder

Renaissance Capital LLC

PS: Look out for our report on the Q3 IPO market this week.