After a lull lasting for about 18 months, the U.S. IPO market is set to pick up speed in the fall. Growth stocks have staged a strong rally in 2023, buoyed by decreased inflation and an excitement over AI progress. This has placed the Renaissance IPO Index (IPOUSA) ahead of the Nasdaq this year, in terms of performance.

September is already looking like an eventful month for initial public offerings. Beyond a successful Arm Holdings IPO and Instacart’s scheduled entry on Sep 19, marketing automation firm Klaviyo and biotechnology firm Neumora are set to list soon, as quoted on CNBC.

Renaissance IPO ETF IPO is up 33.3% this year, First Trust US Equity Opportunities ETF FPX has added about 10% while Renaissance International IPO ETF IPOS has gained about 9.3%. The S&P 500 is up 15.9% this year (as of Sep 5, 2023). ETFs IPO and FPX have added about 2.7% and 1.2% past month versus 1.5% gains in the S&P 500.

Arm IPO Was Blockbuster

British chipmaker Arm Holdings Plc made a solid debut on Nasdaq under the symbol (ARM) on Thursday. The stock soared as much as 21% on the first day, pushing the market cap to more than $65 billion. The chip designer, which is owned by SoftBank Group Corp., sold 95.5 million American depositary shares for $51 a piece, raising $4.87 billion in its initial public offering that valued the company at more than $54.5 billion.

This is the most high-profile IPO that the Nasdaq has seen since 2021's IPO boom, which cycled into a bust in 2022, and is the biggest U.S. initial public offering of the year (read: Arm Debut Gathers Retail Investors' Love: ETFs in Focus).

Instacart to Debut This Week

Instacart raised its initial price range to between $28 and $30 per share in a regulatory filing Friday, probably due to arm’s successful debut. Instacart plans to offer 22 million total shares when it debuts on the Nasdaq, including from current shareholders.

The grocery delivery platform aims for valuation of up to $10 billion. PepsiCo has agreed to purchase $175 million in a concurrent private placement, according to the company’s securities filing, as quoted on CNBC. The company has turned a profit in recent months.

An Email Marketing Platform Klaviyo in the Line

Boston-based Klaviyo is seeking a fully-diluted valuation of up to $8.4 billion in its initial public offering (IPO) in the United States, the marketing firm said on Sep 11, 2023, per Reuters.

Klaviyo, which will be trading under the ticker code of KVYO, will be the first U.S. tech unicorns to go public since 2021. Klaviyo is an especially important deal to watch, since the IPO pipeline contains dozens of enterprise software plays, per Renaissance Capital.