Stock Market: A Month After the IPO, What Performance to Expect? Analysis by Serval Asset Management

The performance details indicate significant disparities among various IPOs. Several introductions experienced rapid and marked increases in the initial weeks, while others showed more modest growth or even declines. Among the best performers one month post-IPO are Fenie Brossette (+200%), Colorado (+164%), and HPS (+131%), with some gains exceeding 100%. Conversely, certain stocks displayed more modest or negative trends, such as RDS (-23%), Jet Contractors (-14%), and Stroc Industrie and S2M, which both reported a 12% drop one month after their introduction. This dispersion primarily reflects differences in issuer profiles, valuation levels at the time of introduction, and the prevailing market context. The latest IPOs also illustrate this dynamic. Cash Plus, which debuted on December 8, showed a 61% increase by the end of its first week of trading, driven by strong investor enthusiasm in the secondary market and robust trading activity from the outset. At the same time, SGTM also received a very favorable reception, with its stock rising over 46% in the past week. Both IPOs generated significant interest in a market attentive to opportunities that offer visibility and growth potential. For the asset manager, the historical data on IPOs indicates that while the median trend remains positive, each introduction maintains its own unique dynamics, closely tied to the balance between fundamentals, pricing, and market conditions.