IPO market recovery dream falls apart! Large new stocks' "maiden battles" one after another end in failure, and Arm's (ARM.US) stock price plummets after its performance, extinguishing any remaining hope.

After disappointing performances from Klaviyo (KVYO.US) and Instacart (CART.US), Arm Holdings (ARM.US) also released disappointing sales guidance on Thursday. Klaviyo continued to fall over 9% on Thursday after a 15% drop on Wednesday, while Instacart fell nearly 10% after an over 4% drop on Wednesday. Arm, on the other hand, dropped over 5% on Thursday. The first quarterly reports of these newly listed major tech companies in the US have mostly failed to meet profit expectations, weakening the remaining optimism in the IPO market. These three new tech companies and shoe manufacturer Birkenstock Holding (BIRK.US) were supposed to break the freeze in the new stock offering market with their IPOs, but their stock prices have performed poorly. Birkenstock also fell over 5% on Thursday. The stock prices of these companies have all shown weakness, dropping over 15% from their highs, and Birkenstock never reached above its offering price. Josef Schuster, Founder and CEO of IPOX Schuster, stated, "There is usually no room for error during the IPO reporting season." He added that it is currently a "very strong buyer's market," with stocks of newly listed companies lagging behind and rising interest rates putting pressure on valuations. Data shows that out of 18 companies that raised over $200 million through traditional IPOs on US exchanges this year, only 4 traded above their offering prices. David Erickson, a former equity capital markets banker and lecturer at the Wharton School, stated, "Most of the companies that went public in 2020 and 2021 are well below their IPO prices, which is not a great record for investors." Investors have lost interest in newly listed companies. Data shows that the funds raised through IPOs on US exchanges this year amounted to only $24.1 billion, slightly higher compared to the dying market in 2020 but a 92% plunge from the $315 billion raised in the same period in 2021. Erickson said, "When there are structurally better trades in sectors where investors have positive interest, the situation may change." The appetite of investors will be tested by two new IPOs. Biotech company Cargo Therapeutics (CRGX.US) and insurance company Hamilton Insurance Group (HG.US) announced their stock pricing on Thursday. At the top end of the pricing range, each company will raise over $250 million, marking another test for the uncertain market. Earlier this year, the emergence of a recovery in the US IPO market sparked some optimism that the market is ready for growth in the last few months of 2023. Now, most bankers and investors agree that the prospect of recovery will be pushed to next year as uncertainty looms globally. Agricultural giant Syngenta announced that it will postpone its planned IPO to the end of next year. In the past few days, reports have suggested that private equity firm CVC Capital Partners postponed its IPO plans in Amsterdam, and other companies like Planisware and WE Soda Ltd. have also halted their IPO plans.