The Exchange just yesterday discussed a downward change in the impending Compass IPO and the disappointing Deliveroo flotation as signals that market demand for high-growth, unproductive tech shares “couldve been” slipping. Recent word highlights the perhaps chilling provisions. This morning, Kaltura, a technology busines that offer video streaming software and services, delayed its IPO. JioForMe reports that the postponement comes after Kaltura’s” valuation challenge was lower than expected .”
TechCrunch indicated yesterday that Kaltura had not liberated a second, higher IPO price range. The detail stood out rendered how red-hot the public sells had proven in recent months for new tech gives. Kaltura’s S-1 filing detailed accelerating income expansion, which at the time we felt would be more than enough to fetch the company an attractive initial public valuation.
It was apparent that Kaltura was also surprised that it was not trending toward a higher IPO price.
Challenging current conditions? For IPOs? For tech IPOs? That’s new.
Axios reporter Dan Primack noted this morning that SPAC formation appears to be slowing. Mix that into the times and yesterday’s anemic-to-awful IPO news, and the market could be seeing a rather rapid retrenchment toward more historic valuations and demand elevations for unproductive equities.
Thinking out loud: We should expect SPAC formation and consider capacity to fall the fastest of all the signals we’re tracking, including IPO pricing, the gait of S-1 filings and first-day trading performance. Why? Because it’s the most strange of the various data points we’ve observed on the way up during the tech boom. Therefore, it should also be the thing most vulnerable to rising financial gravity.
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