COTW: IPOs Have Left Many Speechless This Year

December 14, 2020COTW: IPOs Have Left Many Speechless This Year

  • Airbnb CEO and Co-Founder, Brian Chesky, was left speechless on Bloomberg TV last week after hearing the opening price of his company’s IPO for the first time.  It was a reaction shared by many investors this year when observing the performance of IPOs.
  • This year, sixteen companies have seen their IPO debut opening prices double versus the initial offering price.  The Renaissance IPO Index, which seeks to track the performance of newly listed public companies in the U.S., is up 113% for the year to date while the S&P 500 Total Return Index is up 15.4% over the same period.
  • In the past week, videogame company Roblox and fintech company Affirm both postponed their IPOs in the wake of DoorDash’s and Airbnb’s offerings.  Roblox made this decision after recent IPO performance made it difficult to determine the right price for the company’s shares.


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