Once-Hot IPOs Stumble as Market Volatility Picks Up
- Software stocks hurt by valuation concerns in recent trading
- Weakness may crimp demand for tech listings into 2022
Grab Holdings is trading down since it went public by merging with a SPAC.
Photographer: Ore Huiying/BloombergThis article is for subscribers only.
A banner year for tech-related initial public offerings is poised to go out on a sour note as returns dwindle in a surge of stock market volatility that’s prompted a flight to quality among investors.
More than 130 technology IPOs raised more than $60 billion in the U.S. this year, record hauls for both metrics, according to data compiled by Bloomberg. They comprised about one-third of the entire IPO market, excluding special purpose acquisition companies and direct listings. Recent trading returns, however, have been lackluster.