Despite an armada of IPO bookrunners: JPMorgan, BNP Paribas, BofA, Citi, Deutsche Bank, Evercore, Goldman Sachs, HSBC, Morgan Stanley, Truist, Wells Fargo, CL King, Capital One, Credit Agricole, MUFG, Mischler, Ramirez, Santander, Siebert Williams Shank; DNUT is not appetizing to investors.
Donut purveyor Krispy Kreme opened at $16.30 on Thursday after its initial public offering priced at $17.00 (well below its $21 to $24 offering range)...
...that's not supposed to happen!
19 issuers opted to shrink their IPOs in Q2 (if we include DNUT). That’s the most since 2014, according to data compiled by Bloomberg.
A slashed IPO doesn’t bode well for after market performance, either. This quarter’s IPOs that sold fewer shares than planned are now trading an average of 14% above their IPO prices, less than half of the average return across all of the quarter’s debuts.