Why have post-2019 IPOs lagged the broader market?

The weakness spans both the 2021 vintage and the quieter 2022-2024 cohort, suggesting lockup expirations, sponsor unlocks, and steady secondary supply have weighed on post-IPO returns structurally.

Have all IPO vintages underperformed equally?

Per the Apollo data, both the 2021 issuance spike and the 2022-2024 cohort have lagged, indicating the issue is not confined to a single hot or cold issuance window.

What has driven the broader market's gains instead?

The wider index has been carried by a concentrated set of mega-cap names, while IPO participation has acted as a return drag for allocators.

What does this mean for companies considering going public?

The data reframes the post-2020 assumption that a public listing reliably creates value, suggesting both issuers and buyers should recalibrate expectations around post-IPO performance.

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IPOs Have Lagged the Broader Market Since 2019, Apollo Data Shows

The post-2019 IPO cohort has underperformed the S&P 500 by a wide margin, a reminder that going public is no longer the value-creation catalyst it once was for issuers or buyers.

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IPOs Have Lagged the Broader Market Since 2019, Apollo Data Shows

Apollo's chief economist Torsten Slok shared a chart showing that the basket of US-listed companies that went public since 2019 has meaningfully underperformed the broader market since their debut. The underperformance spans both the 2021 issuance spike and the quieter 2022-2024 cohort, suggesting the weakness is structural rather than tied to any single vintage.

The data reframes the post-2020 assumption that public listings were a reliable path to value creation. Lockup expirations, sponsor unlocks, and the steady flow of secondary supply have weighed on post-IPO performance, while the wider index has been carried by a concentrated set of mega-cap names. For allocators, the read is straightforward: IPO participation has been a return drag, and the index's gains have come from somewhere else entirely.

#IPO #Apollo #MarketPerformance #PublicMarkets

Frequently asked questions

What did Apollo say about IPO performance since 2019?

Apollo chief economist Torsten Slok shared a chart showing that the basket of US-listed companies that went public since 2019 has underperformed the broader market since their debut dates.
Why have post-2019 IPOs lagged the broader market?

The weakness spans both the 2021 vintage and the quieter 2022-2024 cohort, suggesting lockup expirations, sponsor unlocks, and steady secondary supply have weighed on post-IPO returns structurally.
Have all IPO vintages underperformed equally?

Per the Apollo data, both the 2021 issuance spike and the 2022-2024 cohort have lagged, indicating the issue is not confined to a single hot or cold issuance window.
What has driven the broader market's gains instead?

The wider index has been carried by a concentrated set of mega-cap names, while IPO participation has acted as a return drag for allocators.
What does this mean for companies considering going public?

The data reframes the post-2020 assumption that a public listing reliably creates value, suggesting both issuers and buyers should recalibrate expectations around post-IPO performance.

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