ipo

Tech IPOs are popping. A lot.

All but one of the 15 large tech listings so far this year popped on their first day of trading.

Tech IPOs this year have had to launch in unusual, volatile circumstances. But for the most part, they've got one thing in common: gigantic pops.

Looking at the 15 large tech listings of the year so far (not including Unity, which listed Friday), all but one popped. On average, they ended their first day of trading 81% above their IPO price, and some traded much higher: BigCommerce, which had the biggest pop, tripled in value.

Research from Renaissance Capital suggests that, though pops are normal, this year is particularly abnormal: Across all industries, the average first-day performance has been a 36% rise, well above the historical average of 14%. And Ipreo data shows that tech, with an average gain of 28%, only lags health care in terms of its first-day performance.

The pops have reignited debates about whether the IPO process is broken. Critics argue that companies are leaving money on the table and giving handouts to large institutional investors. Proponents, meanwhile, point out that the first-day trading price might not accurately reflect what an entire IPO block could be sold for. They also point to the risk that investors take on by buying illiquid stock — something that investors in Rackspace, the only tech stock to fall on its first day of trading this year with a 22% plunge, know all too well.

 Shakeel Hashim

Shakeel Hashim ( @shakeelhashim) is a former growth manager at Protocol, based in London. He was previously an analyst at Finimize covering business and economics, and a digital journalist at News UK. His writing has appeared in The Economist and its book, Uncommon Knowledge.

ipo
source code podcast
Podcasts

Should startups be scared?

Stock market turmoil is making VCs skittish. Could now be the best time to start a company?

yellow sticky notes on gray wall
Photo by Startaê Team on Unsplash

This week, we break down why Elon Musk is tweeting about the S&P 500's ESG rankings — and why he might be right to be mad. Then we discuss how tech companies are failing to prevent mass shootings, and why the new Texas social media law might make it more difficult for platforms to be proactive.

Then Protocol's Biz Carson, author of the weekly VC newsletter Pipeline, joins us to explain the state of venture capital amidst plunging stocks and declining revenues. Should founders start panicking? The answer might surprise you.

Keep Reading Show less
Caitlin McGarry

Caitlin McGarry is the news editor at Protocol.

downturn startups source code podcast
sponsored content
Sponsored Content

Why the digital transformation of industries is creating a more sustainable future

Qualcomm’s chief sustainability officer Angela Baker on how companies can view going “digital” as a way not only toward growth, as laid out in a recent report, but also toward establishing and meeting environmental, social and governance goals.

Three letters dominate business practice at present: ESG, or environmental, social and governance goals. The number of mentions of the environment in financial earnings has doubled in the last five years, according to GlobalData: 600,000 companies mentioned the term in their annual or quarterly results last year.

But meeting those ESG goals can be a challenge — one that businesses can’t and shouldn’t take lightly. Ahead of an exclusive fireside chat at Davos, Angela Baker, chief sustainability officer at Qualcomm, sat down with Protocol to speak about how best to achieve those targets and how Qualcomm thinks about its own sustainability strategy, net zero commitment, other ESG targets and more.

Keep Reading Show less
Chris Stokel-Walker

Chris Stokel-Walker is a freelance technology and culture journalist and author of "YouTubers: How YouTube Shook Up TV and Created a New Generation of Stars." His work has been published in The New York Times, The Guardian and Wired.

sponsored sponsored content
deals
Fintech

Data privacy and harassment could spoil Grindr’s Wall Street romance

As it pursues a long-held goal of going public, the gay dating app has to confront its demons.

Grindr may finally be a public company.

Illustration: woocat/iStock/Getty Images Plus; Protocol

Grindr's looking for more than just a hookup with Wall Street. Finding a stable relationship may be tough.

The location-based dating app favored by gay men was a pioneer, predating Tinder by three years. It’s bounced from owner to owner after founder Joel Simkhai sold it in 2018 for $245 million. A SPAC merger could be the answer, but businesses serving the LGBTQ+ community have had trouble courting investors. And Grindr has its own unique set of challenges.

Keep Reading Show less
Veronica Irwin

Veronica Irwin (@vronirwin) is a San Francisco-based reporter at Protocol, covering breaking news. Previously she was at the San Francisco Examiner, covering tech from a hyper-local angle. Before that, her byline was featured in SF Weekly, The Nation, Techworker, Ms. Magazine and The Frisc.

grindr raymond zage spac tiga acquisition corp. deals
nfts

Inside the Crypto Cannabis Club

As crypto crashes, an NFT weed club holds on to the high.

The Crypto Cannabis Club’s Discord has 23,000 subscribers, with 28 chapters globally.

Photo: Nat Rubio-Licht/Protocol

On a Saturday night in downtown Los Angeles, a group of high strangers gathered in a smoky, colorful venue less than a mile from Crypto.com Arena. The vibe was relaxed but excited, and the partygoers, many of whom were meeting each other for the very first time, greeted each other like old friends, calling each other by their Discord names. The mood was celebratory: The Crypto Cannabis Club, an NFT community for stoners, was gathering to celebrate the launch of its metaverse dispensary.

The warmth and belonging of the weed-filled party was a contrast to the metaverse store, which was underwhelming by comparison. But the dispensary launch and the NFTs required to buy into the group are just an excuse: As with most Web3 projects, it’s really about the community. Even though crypto is crashing, taking NFTs with it, the Crypto Cannabis Club is unphased, CEO Ryan Hunter told Protocol.

Keep Reading Show less
Nat Rubio-Licht

Nat Rubio-Licht is a Los Angeles-based news writer at Protocol. They graduated from Syracuse University with a degree in newspaper and online journalism in May 2020. Prior to joining the team, they worked at the Los Angeles Business Journal as a technology and aerospace reporter.

cannabis cryptocurrency nfts
critical minerals
Climate

The minerals we need to save the planet are getting way too expensive

Supply chain problems and rising demand have sent prices spiraling upward for the minerals and metals essential for the clean energy transition.

Critical mineral prices have exploded over the past year.

Photo: Andrey Rudakov/Bloomberg via Getty Images

The newest source of the alarm bells echoing throughout the renewables industry? Spiking critical mineral and metal prices.

According to a new report from the International Energy Agency, a maelstrom of rising demand and tattered supply chains have caused prices for the materials needed for clean energy technologies to soar in the last year. And this increase has only accelerated since 2022 began.

Keep Reading Show less
Lisa Martine Jenkins

Lisa Martine Jenkins is a senior reporter at Protocol covering climate. Lisa previously wrote for Morning Consult, Chemical Watch and the Associated Press. Lisa is currently based in Brooklyn, and is originally from the Bay Area. Find her on Twitter ( @l_m_j_) or reach out via email (ljenkins@protocol.com).

cobalt critical minerals electric vehicles lithium nickel supply chains
Latest Stories
Bulletins