Maker of $400 golf putter set to end week at under $4 IPO price after first filing

Maker of $400 golf putter set to end week at under $4 IPO price after first filing

(Bloomberg) — Sacks Parente Golf ended its first week of trading lower, just days after it made its best initial public offering (IPO) debut on a U.S. stock exchange this year.

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Shares fell 20% on Friday, the third straight day of declines, pushing weekly losses to 37%. The pullback also erased all of the gains from Tuesday’s jump of 624%. The golf company closed Friday at $2.51, well below its initial public offering price of $4.

The swing action is reminiscent of the “pop and drop” trend found in small IPOs last year, when small-cap listings saw huge gains in their trading debuts that quickly collapsed, according to Matt Kennedy, chief strategist at Renaissance Capital.

“In a typical IPO, it would be strange to price a company at the lower end of its range and then pop 600%,” Kennedy said over the phone, referring to Sacks Parente’s first day of trading.

But the $400 putter maker’s first week shows that “there is still a sub-section of the IPO market where the casino is open,” he said.

Read more: $400 street vendor becomes the best IPO of 2023 with a gain of 624%

Kennedy added that although rapid deployments have been less frequent for IPOs this year, there is another recent public company that has experienced similarly volatile price swings.

VinFast Auto Ltd.’s market capitalization increased. , which debuted this week through the merger of a special purpose vehicle acquisition company, gained 255% on its first trading day Tuesday, pushing the electric car maker’s market capitalization higher than shares of General Motors Co. and Ford Motor Co. It has since fallen, erasing more than 58% since Tuesday’s close.

Read More: Vietnam Tycoon Loses $23 Billion After Wild EV IPO

(Updates stock movements when the market closes)

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