The quarter is starting with more signs of weakness across the global market for initial public offerings.
Thursday’s planned listings including Frontier Group Holdings Inc. are encountering poor trading, postponements and reduced deal sizes. They follow a collapse by Deliveroo Holdings Plc in its London debut and the worst start for a Hong Kong IPO in three years on Wednesday. The mounting troubles for IPOs arrive while the market surges to all-time highs to start the second quarter.
The largest debut of the day, Frontier Airlines’ parent company, opened below an IPO price that itself was at the bottom of the marketed range. It’s the fifth consecutive listing that opened flat or below its IPO price, excluding deals that raised less than $500 million, according to data compiled by Bloomberg. Mobile charging company Smart Share Global Ltd also traded below its IPO price in its first session.
Real estate firm Compass Inc. on Wednesday cut its IPO in half before the deal priced at the bottom of a reduced range. Software maker Karooooo Ltd also saw its deal get downsized before trading on Thursday.
Two more expected debuts on Thursday, Kaltura Inc. and Utime Ltd., are in limbo after being removed from Nasdaq’s IPO calendar and not announcing pricing as expected. Medical device maker Inspira Technologies Oxy BHN Ltd. has also not announced pricing news, despite being scheduled to start trading on Thursday.