5 Worst-Performing IPOs Of 2021

The public markets saw a record number of IPOs and capital raised in 2021. Around 1,500 companies went public via traditional IPO, direct listing or via SPAC merger. Public listings in 2021 raised over $490 billion.

Here is a look at the five worst-performing IPOs of 2021. (A previous article listed the five best-performing IPOs for 2021.) Results are based on IPO pricing and micro-cap companies have been omitted from the list.

1. Bright Health Group BHG

IPO: June 2021

IPO Price: $18

YTD Range: $3.07 to $17.93

Current Price: $3.51

YTD Performance: -81%

Health care company Bright Health went public in June at a price point of $18, below an originally planned pricing range of $20 to $23. Shares quickly traded down from the IPO price and have never recovered.

The company operates in 99 markets across 13 states, working with more than 200,000 providers and over 600,000 members. Higher than expected costs related to COVID-19 led to the company turning in wider losses in the fiscal year.

2. InnovAge Holding Corp INNV

IPO: March 2021

IPO Price: $21

YTD Range: $3.46 to $27.18

Current Price: $4.08

YTD Performance: -81%

Health care delivery platform company InnovAge Holding went public in March and saw shares trade over the offering amount for its first few months as a public company.

The company focuses on improving care for seniors by allowing them to remain in their homes versus hospitals and nursing homes. The company operates across 17 states and covers around 6,600 participants.

3. Oscar Health OSCR

IPO: March 2021

IPO Price: $39

YTD Range: $7.64 to $37.

Current Price: $8.50

YTD Performance: -78%

Health insurance company Oscar Health commanded a $9.5-billion market cap when it priced its IPO. The company’s market cap now stands at less than $2 billion, as shares have fallen significantly since the public listing.

The company uses a technology-minded approach to offer small group and Medicare Advantage plans. Oscar Health offers plans in 19 states. The current membership of 594,000 is up from last year’s ending figure of 529,000.

The company’s third quarter saw direct policy premiums of $895.4 million, up 54% year-over-year. Expenses rose in the third quarter, leading to a wider net loss of $212.7 million for the third quarter.

Related Link: How 2020’s Hottest IPOs Have Performed In 2021

4. Tuya Inc TUYA

IPO: March 2021

IPO Price: $21

YTD Price: $4.88 to $27.65

Current Price: $6.09

YTD Performance: -71%

Global Internet of Things (IoT) developer Tuya works with OEMs, developers and retail chains to offer its services.

The company reported third-quarter revenue of $85.6 million, up 45% year-over-year. Shares fell earlier in August after reporting second-quarter earnings and offering third-quarter revenue guidance that was below Street consensus.

5. Missfresh Ltd MF

IPO: June 2021

IPO Price: $13

YTD Range: $3.52 to $11

Current Price: $4.08

YTD Performance: -69%

Chinese online grocery company Missfresh is another 2021 IPO that failed to ever get over its IPO price since going public. The company counts Tencent Holdings ADR TCEHY as an investor.

Missfresh uses a mobile e-commerce platform that offers delivery of fresh items such as fruits, vegetables, meat and dairy products.

Photo by Ussama Azam on Unsplash