IPO Pops Proliferate as Two More Firms Surge 50%
IPO Pops Proliferate as Two More Firms Surge 50%
(Bloomberg) -- The buying spree in freshly minted IPOs expanded on Friday to include luxury reseller The Realreal Inc. and biotechnology firm Karuna Therapeutics Inc., which both surged by about 50% in their debuts.
The Realreal, the purveyor of $8,000 Oscar de la Renta jackets and $30,000 Hermes alligator handbags went public on Friday after its IPO priced above the offering range overnight. This latest round of bullish bidding helped The Realreal and Karuna become the ninth and tenth U.S. IPOs since Memorial Day to surge by at least 50% in debuts, a feat accomplished just once over the first five months of 2019.
Friday’s trading follows two record-breaking debuts from Thursday’s session. Bridgebio Pharma Inc. opened 80% above its IPO price. Six minutes later, Adaptive Biotechnologies Corp. opened at nearly double its IPO price, surpassing CrowdStrike Holdings Inc. to become the year’s biggest pop from any sector. Other recent IPOs to surge in their first sessions include Chewy Inc., Revolve Group Inc., Fiverr International Ltd., Personalis Inc. and Stoke Therapeutics Inc.
IPO pops have gotten more frequent as stocks test record highs and volatility stays low, but some investors worry they are a sign of the market’s top.
--With assistance from Olivia Rockeman and Kim Bhasin.
To contact the reporter on this story: Drew Singer in New York at dsinger28@bloomberg.net
To contact the editors responsible for this story: Brad Olesen at bolesen3@bloomberg.net, Morwenna Coniam
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