Shares of newly listed tech companies Arm Holdings PLC (NASDAQ:ARM), Instacart (NASDAQ:CART) and Klaviyo have retreated following their impressive debuts, raising doubts about whether an initial public offering (IPO) market comeback is underway.
The recent IPOs have captured significant investor attention due to the lack of new listings over the past 18 months amid the broader market downturn spurred by rising interest rates.
After rising 9% above its IPO price of US$27 to US$29 per share on Wednesday, marketing automation firm Klaviyo stock slipped 3.4% in premarket trade on Thursday to US$31.65.
Chipmaker ARM and grocery technology company Instacart (NASDAQ:CART) also soared upon their debuts on September 14 and 19 respectively, but have since retreated toward their listing prices.
ARM was trading at US$52 before the opening bell in New York on Thursday, just $1 above its IPO price of US$51.
Instacart (NASDAQ:CART) was trading at US$31, also just $1 above its IPO price of US$30.
Contact the author at emily.jarvie@proactiveinvestors.com
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