The most successful IPO of the year belongs to a company that sells golf putters that cost $400 each.
On their first trading day on Tuesday, shares in Sacks Parente Golf jumped almost 600% before losing some of those gains in the aftermarket.
The California firm issued 3.2 million shares at $4 apiece, and it says their putters are the only ones that “naturally improve your stroke.” They closed the day at $28.97, but dropped in the extended session, down 29% to $20.52.
Sacks Parente’s 624% increase made it the year’s best-performing market debut and provided some optimism for the otherwise lackluster IPO market.
The Federal Reserve’s interest rate hikes in recent months have contributed to higher borrowing costs, which may explain the decline in flotations.
The tech industry has taken a significant amount of damage. CNBC cited data from FactSet showing that only 10 Nasdaq businesses raised $100 million or more in the first half of this year. More than five hundred floats with a value of at least $100 million were conducted in the same time period in 2021.
But the stock markets have been rising even in the absence of fresh investment capital. Concerns about a recession have subsided, and the Federal Reserve’s rate hikes appear to be having the desired effect, with the CPI falling to about 3%.
In part because of the AI boom, the S&P 500 is up 16% year to date, the Nasdaq is up 31%, and the Dow Jones is only up 5.5%.