NEW YORK, June 29 (Reuters Breakingviews) – The market for U.S. initial public offerings is starting to crack open, but some trends are playing better than others. Shares in thrift store chain Savers Value Village (SVV.N) opened 38% above their IPO price on Thursday even as two other new entrants, Fidelis Insurance (FIHL.N) and energy company Kodiak Gas Services (KGS.N), got a frosty reception.
After pricing above its indicated range and then rising further, Savers Value was worth nearly $4 billion in its early hours of trading. It follows Cava (CAVA.N), the Mediterranean lunch chain that by Thursday was worth nearly double the IPO price of $22 it established in mid-June. Meanwhile, Fidelis and Kodiak had to cut their price range, and both debuted below their opening price.
The divergence looks like a simple economic bet that consumers are doing better than expected, as inflation eases and a dreaded U.S. recession stays at bay, at least for now. Consumer goods are the only sector where new listings in the second quarter had double-digit positive returns, according to Renaissance Capital, while healthcare, technology and energy were negative. It’s not the sale of the century but it’s a start. (By Jennifer Saba)
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Consumers crack open IPO door
