“I’m Not Regretting my IPO, Despite the Share Price Crash”
In this era of uncertainty, why did Ibotta’s CEO, Bryan Leach, decide to take his enterprise rewards platform public?
The answer lies in not timing the market, and instead, going public knowing that it’s a fleeting moment. As Leach so eloquently said, “Who knows what the Federal Reserve will do?” It’s a waiting game, and one which Ibotta chose not to play.
So, are companies waiting too long or are they wise to abstain from the IPO mania? According to the CEO, going public during the boom days of 2021 and 2019 was the wrong idea. He advises companies sitting on large valuations acquired during the bubble to either take the plunge or fold.
Ibotta hit the market this April after a year-long delay in its IPO process. Prior to that, the tech giant had received offers it couldn’t refuse, all while maintaining an air of legitimacy and transparency. Companies like Instacart (which hit a 52-week high this week – coincidence?) know the strength of a publicly traded venture.
The biggest risk wasn’t the uncertainty of federal interest rates but the reality of the post-IPO stock price volatility. One could argue that Ibotta’s 50% free fall since its IPO says otherwise. Yet, those who doubt the wisdom will be left waiting, asking themselves what if they decided to take the plunge only to see the market fall.
As we wait out the storm, it wouldn’t be long before rates drop and companies are invited to join the party come 2025. Is it too early to label the IPO market as anything but a graveyard? And what about those companies too afraid to make the necessary sacrifices for a successful publicly traded venture?
Leach’s message remains clear- don’t be afraid. The only mistake is listening to the wrong advice at the wrong time. But for now, Ibotta’s stock will continue plummeting, while Instacart soars. Would you take the risk too?
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