Sacks Parente Golf Inc.’s stock (SPGC) experienced a significant decrease of 30% during pre-market trading on Wednesday. This decline comes after the stock had an impressive increase of 624% during its trading debut on Nasdaq.
Golf Equipment Maker Goes Public with Strong Debut
Sacks Parente Golf Inc., a golf equipment maker, went public at an offering price of $4 per share. However, due to upsizing its deal at pricing, it closed at $29.87. Despite the successful trading debut, it is notable that this is the first golf Initial Public Offering (IPO) since 2016 when Acushnet Holdings Corp., the parent company of the well-known Titleist brand, entered the market.
Consumer Companies Showing Promising IPO Performances
Sacks Parente Golf Inc. joins a growing list of consumer companies that have seen substantial gains during their trading debuts. This follows the successes of Cava Group Inc., a Mediterranean-style fast-casual restaurant chain that opened up 90.9% on its initial day of trade in June, and Oddity Tech Ltd., the parent company of the popular Il Makiage online beauty and wellness range, which soared 38% during its debut in July.
IPO Market Comparison
Although there has been an increase of 29% in IPOs priced this year compared to last year, the overall number of IPOs remains lower than previous years. According to Renaissance Capital, a provider of IPO exchange-traded funds and institutional research, there have been 66 IPOs priced so far in 2021.
As of the year-to-date figures, the Renaissance IPO ETF has gained 29.85%, while the S&P 500 has gained 16%.