IPOs in the United States have raised $171 billion, surpassing the previous high of $168 billion achieved in 2020. Since March 2020, a retail investor frenzy into growth companies has resulted in several companies debuting at multibillion-dollar valuations. On Wall Street, there are fears of a tech bubble. The average one-day gain for IPOs so far this year has been more than 40%, a huge increase over the average gains of 28% and 21% in 2020 and 2019, respectively. Some of the fears surrounding the IPO mania have come true as a result of a crackdown by the Chinese government. The most active year for IPOs was 1999, just before the dotcom bubble exploded. So far, 2021 appears to be on track to outperform 2000. The S&P 500 is currently dominated by technology companies, with the top five accounting for 20% of the total.
Here is Insider Monkey’s list of the 10 IPOs that flopped. In 2018, Tintri, Inc. filed for bankruptcy protection. The stock was previously known as TNTR on the NASDAQ exchange. Following that, the company declared that it was looking for a loan from TriplePoint Capital and that it was appointing a restructuring officer. An esports and video gaming platform is owned and operated by the company. When the company went public in 2019, it raised $25 million in an initial public offering. The stock price dropped from $11 per share to $9.64 per share, a drop of more than 12%. Casper Sleep Inc. is a sleep product manufacturer and retailer based in New York. The company raised $100 million through an initial public offering (IPO) in early 2020, which was set at the bottom of a price range. Root, Inc. is ranked seventh. The company’s stock price has plummeted since its initial public offering. The company reported a 50% drop in revenue and a 56% increase in net losses in February of this year. SmileDirectClub, Inc. is ranked sixth. The company is based in Tennessee and works in the oral care market. On the first day of trading, shares plunged over 27% to around $17 per share. For more details, click 10 IPOs That Flopped.
