Mar 22, 2024 - Business

The global IPO market just hit its inflection point

Reddit co-founder and CEO Steve Huffman at the NYSE

Reddit co-founder and CEO Steve Huffman at the NYSE. Photographer: Michael Nagle/Bloomberg via Getty Images.

The IPO market has had itself a hell of a week, and not just in the U.S.

By the numbers: Global offerings raised more than $5.6 billion since Monday, with most issuers seeing strong gains in early trading.

Why it matters: We're done with "waiting until market conditions improve" or "uncertainty." If a company has the numbers or story to go public, the only impediment is inertia.

Domestic: Reddit deservedly got most of the headlines, raising $748 million and then closing up more than 48% from its IPO price on its first trading day. For more, check out our interview with Reddit CFO Drew Vollero (who was Snap's CFO when it went public in 2017).

  • There also was chipmaker Astera Labs, which raised $713 million in an upsized offering and then saw its shares climb more than 78% over two days. In fact, Astera has a higher market cap than does Reddit ($9.7b vs. $8b).
  • Auna, a Latin American hospital operator that lists today in New York, raised $360 million after pricing just below its offering range.

Switzerland: Galderma, a skin care company owned by EQT, raised the equivalent of $2.2 billion, with shares rising as much as 18% in its market debut. It was the largest Swiss franc-denominated IPO in seven years.

Japan: Discount retailer Trial Holdings raised the equivalent of $258 million in Tokyo's largest IPO so far this year, and saw its shares rise 29% on their first trading day.

UAE: Parkin, a Dubai-based public parking facilities operator, raised $429 million in an IPO that reportedly attracted a record amount of orders ($71 billion).

Germany: Douglas, a high-end cosmetics and perfume retailer owned by CVC Capital Partners, raised the equivalent of $967 million.

  • It was Germany's largest IPO of 2024, but also something of a disappointment — pricing at the bottom of its offering range and then watching its shares sink on both of its first two trading days.
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