TPG went public today, ringing in the first IPO of 2022. 🔔 TPG opened 12% above its offering price, valuing the company at $12 billion.
TPG announced it would sell its shares at the midpoint of its price range last night, which we reported to be $29.50. However, by the end of the day, the private equity firm had risen 15.3%, hitting $34.00/share. The company’s shares enjoyed those gains even amidst weakness in the Nasdaq Composite, which was down 2.5% today.
On some level, TPG’s IPO success might invite concerns that America’s IPO pipeline could freeze up during the Fed’s ongoing macro campaign. Major indexes have appreciated considerable corrections from their end-of-year prices, which has been enough to scare some companies from testing their own market debuts — namely Justworks, which decided to punt its IPO given concerns about the health of the markets. 👋
However, in fairness to Justworks and other companies, TPG is a diversified giant — and other P/E rivals like Blackstone and KKR have bested the S&P 500. Although TPG still has to prove its worth (the company only makes $109 billion in assets, a fraction of its competitors), the company’s success today indicates investors’ appetite for healthy risk in the markets. 📈
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