Analysis-After US IPO stumbles, companies under pressure to offer bargains

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Watch onNEW YORK - Companies pursuing U.S. initial public offerings after a string of lackluster stock market debuts are receiving advice from investment bankers to lower their valuation expectations.

Only the shares of marketing automation platform Klaviyo Inc have consistently traded over their IPO price, ending trading on Wednesday 2% over it. The four big IPOs were a shot in the arm to U.S. listing volumes. Total proceeds from IPOs on U.S. exchanges totaled $19.4 billion from the start of 2023 to the end of last week, a two-year high that nearly tripled the haul over the same period last year, according to LSEG.

Healthcare payments tech firm Waystar, insurance group Hamilton and oil-and-gas helicopter provider PHI Group will have to decide in the coming days whether they will proceed with their IPOs and how aggressively they will price them.

 

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