$400 Putter Maker Becomes 2023's Hottest IPO With 624% Gain, But Then Something Happened

Sacks Parente Golf, Inc. SPGC went public on Tuesday at $4 a share. The stock closed Tuesday trading at around $26 a share, good for a more than 600% gain, which made it 2023’s hottest IPO of the year.

Sacks Parente’s stock was halted 19 times for volatility on Tuesday, according to a Bloomberg article.

But Wednesday was when a financial version of a triple bogey happened. The stock dropped more than 80%, closing at $4.54.

Sacks Parente is a relatively small company in terms of IPOs with a market share of around $60 million. Cava Group, Inc. CAVA, which went public in June, has a market cap of more than $5 billion.

Sacks Parente makes luxury putters that cost as much as $400 with some closer to $500. Scottie Cameron, which is owned by Acushnet Holdings Corp GOLF, as well as Odyssey under the Topgolf Callaway Brands Corp MODG, also make putters that cost hundreds of dollars. 

Sacks Parente made less than $200,000 in sales according to the SEC, and has yet to turn a profit. But, that didn’t deter speculative investors from coming in and buying the low-float stock on Tuesday. 

It’s been a mixed bag for golf stocks in 2023, with Acushnet (also the parent company of Titleist and Footjoy) was up more than 25%, while Topgolf Callaway’s stock is down about 16% on the year. 

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