Despite the current series of positive and negative economic data, stocks are moving higher in regular exchanges. And among the actions that are increasing the most are the two IPOs funded by companies: Lemonade and Accolade.
TipsClear wrote this morning that companies ‘aggressive price arcs on IPOs bode well for the IPO market itself, that investors are ready to value unprofitable companies’ growth stocks with vigor , which could help other companies looking at government procurement get out of the sidelines.
Then the two companies opened clearly higher, and currently looks like this (Data via Yahoo Finance):
- Lemonade: $ 61.62 per share, up $ 32.62 or 112.48%
- Brace: $ 34.39 per share, up $ 12.39 or 56.32%
Yes, these are big numbers.
Expect the regular string of complaints that companies have been misjudged (maybe) and could have charged more for their equity when they first started public (again, maybe). But for both companies, it’s always a great day. The prices above the range, then seeing public investors frantically offer your higher shares, are much better than the alternatives.
How companies will fare when they publish their results (the third quarter is just around the corner, so the second quarter earnings cycle is nearing the corner) will help adjust their actual valuations. But, for today at least, lemonade and Accolade made their still deprived brothers a solid up and not down.