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IPO investors in a record-breaking issuance rush in 2021 have so far been disappointed by dismal returns, and the outlook for the once-booming market is only getting worse with rising rates and insider selling on the horizon.
Last year, the number of U.S. traditional IPOs climbed to the highest levels since the late 1990s and deal value hit record levels, according to Dealogic. So far performance from these public debuts has been lagging their historical average significantly.
2021 deals have fallen 14% on average in the six-month post-IPO period, compared to a historical average of 14%, according to Bank of America.