IPO Update: Mid-Year Average Return Deceptively Positive In Down Market

Outlier Leads To 25% Gain For 2022 Offerings

 
• By Mandy Jackson
  
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The 14 biopharma firms that went public during the first half of the year generated a 25% average return, helped by an outlier whose value rose 585%. Excluding Belite Bio, the -18% return for the IPO class of 2022 is more representative of current market realities. 

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Excluding the top two performers, the average return dropped from 25% to -33% • Source: Shutterstock

At first glance, the 14 biopharmaceutical firms that went public during the first half of 2022 appear to be holding up well with an average return of 25% versus their initial public offering values. However, this year’s IPO class performance was propped up by a pair of outliers – Belite Bio, Inc., which debuted at $6 per share and closed up 585% on 6 July, and Nuvectis Pharma, Inc., which jumped 160% from its $5 IPO price.

Excluding Belite, the average return for the remaining 13 companies was -18%, and without Nuvectis, the other 12 companies generated...

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