Birkenstock shares pop, then drop
Birkenstock shares fell more than 12% below the IPO price on Wednesday. IGTV financial analyst @AngelineOng explains why the share drop may be a reflection of the current mood of the IPO market, rather than the offering itself.
(Video Transcript)
Poor IPO show from Birkenstock, as shares plunge 12%
There are more signs now that investors remain cautious when it comes to initial public offerings (IPOs). Birkenstock shares ending more than 12% below its IPO price, marking the worst debut by a company worth more than $1 billion in nearly two years. This is according to data by LSEC.
Now, Birkenstock's fortunes, in terms of its IPO, are not unique. We've seen ARM, we've seen Instacart and Clavier come to market and their shares have mostly fallen since their listings too.
Investors gauge market mood before acting
We're already seeing early signs that investors are looking to the mood of the market before moving, and this is also affecting companies looking to list.
In Europe, we've seen German military contractor Renk coming out and saying that it will pull its listing in the final hours of Wednesday, blaming market conditions. And also in the coming weeks, it'll be key to see how many of the string of European companies slated to come to market actually do the same.
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