Intriguing IPOs: Still Hunting...

Just because IPOs happen all the time, it doesn't necessarily mean you will find investment-worthy ones each time.

The Hunt Breakfast, Gustav Courbet, 1858, oil on canvas (Wallaraf-Richartz Museum)

Just because a lot of IPOs are happening, it doesn’t mean they are in any way intriguing. Since looking at Sharkninja (NYSE: SN) early last month, there haven’t been that many IPOs that I would consider attractive.

Since the beginning of July, there have been 26 IPOs (excluding the initial listing for special purpose acquisition corporations [SPACs]). Of those 26 companies, only three have posted a positive return (Apogee Therapeutics, RayzeBio, and Arm Holdings), and the average return for those 26 IPOs to date is -39.25%. 12 of them are already down more than 50%. The July and August batch of IPOs was littered with foreign-listed companies with business descriptions that read as though they were run through a translation tool still in beta testing.

Sifting through IPOs is the epitome of the search for a needle in a haystack.

While I have yet to come across anything that piqued my interest as of late, here are some running notes on three companies that have either recently gone public or plan to in the coming weeks. They haven’t passed the hurdle for “intriguing” for various reasons, but here’s how I arrived at that conclusion.

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But first…

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