Here are the key takeaways:
- Measuring the Biggest U.S. IPOs: This chart ranks the 10 largest U.S. IPOs by deal size since 1999 and tracks how each performed over the following 12 months from their IPO date.
- A Look at the Data: All 10 of the largest U.S. IPOs since 1999 had negative returns one year after going public, with an average 1-year forward return of -26.8%.
- Investment Implications: The data offers a cautionary tale for IPO investors. Despite the excitement surrounding mega IPOs like SpaceX, history shows the biggest offerings have struggled in their first year of trading.That doesn't mean SpaceX will follow the same path. But when there is hype about the next big IPO, this chart is a simple, visual way to set realistic expectations and serves as a reminder that a great company doesn't always make a great investment right out of the gate.
