After SpaceX’s $75 billion IPO, the US new listings market slowed — OilPrice
The US initial public offering market has slowed four months after SpaceX’s $75 billion IPO in June. Smart-ring maker Oura, data-center company SB Energy and petrol station chain EG Group have postponed their plans to go public, while nuclear energy company Holtec has withdrawn its IPO filing.
As OilPrice reports, investment bankers and analysts attribute the shift in sentiment to restrained investor demand, concerns over high valuations of companies in the artificial intelligence sector, and active share sales shortly after market debuts.
Valuations and post-debut selling
Analysts at Renaissance Capital noted that after a strong second quarter, issuers were preparing deals with pricing expectations that may be too high for the current volatile market. According to the publication, SoftBank-backed SB Energy sought a valuation of $50 billion, although it has not yet put any facility into operation.
Investor skepticism was also heightened by a phenomenon known in the market as “pop and drop”: after heavily oversubscribed IPOs, investors actively sell shares in the first days of trading. SpaceX shares rose by about 19% on the first day, but declined in the following months and traded at around $158.9.
A similar pattern was observed outside the United States. Humanoid robot maker Unitree Robotics rose 460% from its IPO price during its first trading session after listing in Shanghai, but subsequently lost 46.7%.
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Postponed plans by major companies
Oura, which planned to raise up to $2.2 billion at a valuation of $15.6 billion, cited uncertainty in the IPO market as the reason for the delay. Holtec withdrew its IPO filing last month, citing unfavorable market conditions.
Economic uncertainty has also affected the plans of OpenAI and Anthropic. According to the publication, Anthropic, which is targeting a valuation of $2 trillion, expects to list in mid-November, while OpenAI has postponed its IPO until 2027.
Weak activity in the United Kingdom
In the United Kingdom, seven listings took place this year, raising £577 million in the first half, according to EY. At the same time, African payments company Airtel Money confirmed its London debut on October 14 at a valuation of £5.3 billion.
According to Berenberg’s latest Investor Barometer, only 32% of asset managers expect IPO activity to pick up over the next 12 months. Six months ago, 63% of respondents held this view.
