Most tech-related listings below IPO price

The many tech businesses that went public in the United States during the pandemic have been hit hard by the bear market, with issuers racing to enter the market when demand was high and valuations rising.

According to Bloomberg data, more than 80% of technology-related initial public offerings have traded below their initial public offering price since March 2020.

Risk appetite dries up as US interest rates rise

Some of the most anticipated IPOs in recent years, such as online brokerage firm Robinhood Markets Inc. and electric car manufacturer Rivian Automative Inc., are among the losers.

The findings reflect a drop in investor interest in the riskiest stocks as a result of the Federal Reserve’s efforts to manage inflation by raising interest rates.

Since November, the Nasdaq 100 tech index has lost about 24% of its value, while the broader S & P 500 has lost half of its value.

Last year, the stocks of firms with the fastest predicted growth, some of which were beneficiaries of the epidemic, gained spectacularly, and many of them were priced in, said Mark Hawtin, investment director at GAM.