Cava Stock Makes A Stand In Mixed IPO Landscape: Where Does It Rank Against Other 2023 Wall Street Debuts?
Author: AJ Fabino | June 16, 2023 01:59pm
In a year that’s seen a sharp decline in initial public offerings, Washington, D.C.-based Mediterranean restaurant chain Cava Group (NYSE:CAVA) made a striking first public appearance on the New York Stock Exchange on Thursday, with shares opening at $42, almost doubling their IPO price of $22.
Despite an over 15% fall to $37.15 on Friday, the company’s IPO performance remains noteworthy, ranking it high on the list of best performing IPOs of 2023.
So how does Cava’s IPO performance stack up against 2023 IPO high-flyers?
First, it should be noted that there have been 71 IPOs on the U.S. stock market in 2023, according to Stock Analysis — 41.8% less than at the same point in 2022. The IPO drought can be attributed to volatile markets, inflation and the Federal Reserve's yearlong interest rate hike campaign.
The above data shows the stark contrast in IPO success in 2023. Cava’s almost 100% return ranks it in fourth place among the year’s top performers.
Genelux Corporation, a pharmaceutical company, tops the list with an astronomical 503% return. Similarly, Structure Therapeutics and Hitek Global also managed to deliver returns above 100%.
On the flip side, the poor performers list is led by The NFT Gaming Company, which has seen its value plummet by over 80% since its IPO. It is interesting to note the worst-performing IPOs are from a variety of sectors including gaming, biotech, energy and finance.
Despite the volatile economic environment and reduced IPO activity, Cava managed to stand out in the crowd.
