When a company goes public, the first trading day often sets the tone for investor sentiment. Some IPOs skyrocket as demand overwhelms supply, while others stumble, leaving new shareholders with immediate losses. Looking at past extremes helps investors understand what drives first-day success—or failure.

🚀 The 5 Best IPO Debuts

1. RenaissanceRe Holdings (1993, NYSE)
   • First-Day Gain: ~100%.
   • Insurance company shares doubled on debut as investors bet big on a strong Bermuda-based reinsurer.
   • Lesson: Niche industries with strong fundamentals can attract outsized demand.
2. VA Linux (1999, Nasdaq)
   • First-Day Gain: 698% (from $30 to $239.25).
   • The poster child of dot-com mania, it remains one of the biggest first-day pops in history.
   • Lesson: Hype-driven tech markets can create historic surges—but often unsustainable.
3. Beyond Meat (2019, Nasdaq)
   • First-Day Gain: 163%.
   • Plant-based food company surged as investors piled into ESG and alternative protein themes.
   • Lesson: Hot themes + scarcity of public pure plays = explosive demand.
4. Snowflake (2020, NYSE)
   • First-Day Gain: 111%.
   • The biggest software IPO at the time, fueled by cloud computing enthusiasm and high-profile backing from Warren Buffett.
   • Lesson: Strong growth narratives + institutional validation can turbocharge IPOs.
5. Rivian Automotive (2021, Nasdaq)
   • First-Day Gain: 29% (from $78 to ~$100+).
   • Though not a triple-digit surge, Rivian raised $12 billion in the largest U.S. IPO since Alibaba, and its first-day rally signaled strong EV investor appetite.
   • Lesson: Sector megatrends like EVs command premium valuations at IPO.

📉 The 5 Worst IPO Debuts

1. Facebook (2012, Nasdaq)
   • First-Day Result: +0.6% (effectively flat after a $104B valuation).
   • Technical glitches at Nasdaq caused chaos, and the stock dropped in following weeks.
   • Lesson: Overvaluation + trading issues can sour even the most hyped IPOs.
2. Uber (2019, NYSE)
   • First-Day Loss: –7.6%.
   • One of the largest IPOs ever, but weak sentiment around losses and regulation led to the worst first-day dollar loss on record.
   • Lesson: Size doesn’t guarantee stability; fundamentals matter.
3. Etsy (2015, Nasdaq)
   • First-Day Gain: +88%, but the next day shares plunged over 25%.
   • One of the fastest post-IPO reversals.
   • Lesson: High first-day pops can trigger fast profit-taking.
4. Coinsuper (Hong Kong, 2018)
   • First-Day Loss: –44%.
   • Cryptocurrency exchange IPO collapsed on debut amid regulatory concerns.
   • Lesson: Lack of trust in governance or regulatory standing can kill demand instantly.
5. Blue Apron (2017, NYSE)
   • First-Day Loss: –5% (closed below IPO price of $10).
   • The first of many poor sessions as competition eroded confidence.
   • Lesson: Weak fundamentals lead to immediate selloffs, especially in consumer IPOs.

🔑 Lessons for Investors

1. Hot narratives can drive massive pops (VA Linux, Beyond Meat).
2. Size and hype don’t prevent failure (Uber, Facebook).
3. Trading mechanics matter—technical glitches or allocation issues can sink sentiment.
4. First-day gains don’t always last (Etsy, Rivian).
5. Do your homework—understand the business, not just the buzz.

Final Word

The IPO market is a stage where perception meets reality in a single trading day. Some debuts create instant wealth, others instant regret. Investors who remember the lessons of both extremes can better navigate the next wave of offerings.