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Or sign-in if you have an account.SpaceX shares slumped 2.97 per cent Thursday, on pace for an eighth drop in nine sessions, as it wiped out US$903 billion from a closing high last month. Photo by Samuel Boivin/NurPhoto via Getty ImagesSpaceX’s fall from its post-listing peak to below its initial public offering price in just a month poured cold water on the market for newly public companies, dragging a key gauge of this year’s debuts down with it.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorThe pullback across stocks linked to themes such as artificial intelligence infrastructure and aerospace and defence — two of the hottest sectors for newly-public companies — depressed the weighted average return for this year’s United States initial public offerings to six per cent, lagging the S&P 500 Index’s 11 per cent return, data compiled by Bloomberg through July 15 show.Broader market volatility, including share price declines for recent listings, is set to dampen enthusiasm for what a Blackstone Inc. executive dubbed the year of the IPO. The majority of U.S. debuts over the past two months are trading below their offer price, data compiled by Bloomberg show.Canada's best source for investing news, analysis and insight.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Investor will soon be in your inbox.We encountered an issue signing you up. Please try againSpaceX shares slumped 2.97 per cent Thursday, on pace for an eighth drop in nine sessions, as it wiped out US$903 billion from a closing high last month. Shares of SK Hynix Inc., which raised US$26.5 billion in a record-setting debut of its own last week, dropped 12 per cent bringing it just a few dollars above the US$149 level where it sold American depositary receipts to investors.Activity in the near-term will “be less busy than we thought,” Michael Ventura, co-head of U.S. equity capital markets at Royal Bank of Canada, said in an interview. “You will have transactions that launch and price but outside of the headline names it’ll be quieter.”Even without blockbuster deals like SpaceX and SK Hynix, the broader U.S. IPO market hasn’t shot out the lights. The weighted-average return for those 2026 U.S. IPOs has pulled back to roughly 10 per cent through July 15’s close, modestly lagging the return for the S&P 500.The underlying market volatility over the past month, despite an S&P 500 that is virtually unchanged, has prompted investors to rotate away from once-favoured themes. While the benchmark is up roughly 0.3 per cent over that stretch, the Philadelphia Stock Exchange Semiconductor Index has slumped 11 per cent and a momentum basket of stocks down more than eight per cent.“We had a ton of momentum with the AI theme that led to the deals trading well out of the gates but with markets trading how they are, the steam will come off of that a little bit, and that’s to be expected,” said Eddie Molloy, co-head of global equity capital markets at Morgan Stanley.Investors will likely get a taste of companies that sit away from AI with Blackstone-backed Jersey Mike’s Subs Inc. and gas-station and convenience-store operator Cumberland Farms Ltd. able to launch formal marketing of their IPOs as soon as Monday. They would be the first consumer-oriented firms to go public with sizable deals since Suja Life Inc. debuted in May. The handful of notable consumer companies to IPO this year have lagged, ranging from Suja Life’s 48 per cent decline to Yesway Inc.’s 3.3 per cent gain.Still, it’s too early to rule out a second-half surge led by Anthropic PBC, which could go public as soon as October, Bloomberg News reported.Wall Street’s biggest investment banks announced in the last few days that they hauled in the most revenue from advising on equity offerings in the second quarter since 2021, fuelled by SpaceX’s record-setting IPO and a fundraising blitz for AI infrastructure.Companies have already raised $157 billion through July 16, excluding blank-check companies and other financial vehicles, data compiled by Bloomberg show. Bankers are optimistic that deals will flow after September’s Labour Day holiday.“Is there volatility in the broader market and that impacts the IPO market? Yes,” said Arnaud Blanchard, co-head of global ECM at Morgan Stanley. “But overall we’re not seeing a decrease in appetite for deals which we expect to come to market over the coming quarters.” Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.