economy
Beware SpaceX buyers: Major IPOs are typically a rough ride in the first year
A review of 30 major IPOs over the past 15 years shows companies tend to have a rough start, according to Truist Wealth.
TL;DR
- SpaceX's IPO is anticipated to be the largest on record.
- Historical data shows major IPOs typically experience declines and severe drawdowns in their first year.
- Median stock performance for major IPOs is a 9% drop in the first 12 months.
- The majority of companies see significant stock price plunges within their first year.
- SpaceX is expected to go public as a megacap company with high retail investor interest.
- Retail interest could drive significant volatility around the SpaceX IPO.
- Past highly anticipated IPOs like Meta Platforms and Alibaba had rough starts.
- SpaceX plans to make up to 30% of its shares available to individual investors.