Recent Wave of IPOs Disappoints as High Interest Rates Make Investors Wary

Recent high-profile IPOs like Instacart and Birkenstock have stumbled in their stock market debuts, disappointing investors.

Investment bankers are advising companies planning IPOs to lower their valuation expectations due to high interest rates making investors more risk-averse.

IPO proceeds so far in 2023 have nearly tripled compared to the same period last year, but remain below pre-pandemic levels.

More than three-quarters of companies that went public this year are trading below their IPO price, signaling weak overall IPO performance.

Some companies like Rubrik are delaying their IPO plans due to the currently hostile IPO environment and cautious investors.