Reddit IPO: RDDT’s debut raises hopes of IPO market revival

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A steady, sustained rise in activity would breathe life into the market for initial public offerings, which has been largely shut down since 2021.

| A string of companies could follow Reddit into the US stock market in the coming months, bankers believe, after shares of the social media group leapt 48 per cent on their debut.

Strong deals in Europe have added to the mood, with listings for the likes of German defence contractor Renk and Athens International Airport rising after their market debuts.On Friday, investors took further heart from a 21 per cent debut gain for EQT-owned Galderma, which also priced its shares at the top of its range. The Swiss dermatology giant raised 2 billion Swiss francs in the biggest European float since Porsche’s debut two years ago.

Since 2021, when companies sold shares worth $US154 billion in the US as the wider market roared higher, IPOs in New York have raised only a combined $US36 billion, according to Dealogic data. Deals have been smaller too, raising an average $US151 million, less than half the $US388 million of 2021.. The benchmark S&P 500 has climbed 19 per cent in six months, while volatility – a threat to would-be floats – has remained low.

Listings expected soon in Europe include Permira-backed Golden Goose, the Italian luxury sports shoe brand, and Puig, the Spanish beauty and fashion group behind brands including Charlotte Tilbury.Bigger US prizes down the line include Nvidia-backed software group Databricks, valued at $US43 billion in a funding round last year and payments group Stripe, worth about $US50 billion.

 

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