Saudi Aramco isn't the best-performing stock debut of the day. Brazilian finance firm XP skyrocketed 24% in its multibillion-dollar IPO.
- Brazilian financial services company XP Inc. surged as much as 26% Wednesday after its initial public offering raised nearly $2 billion.
- The stock jump establishes XP as outperforming Saudi Aramco, which soared 10% after its record-breaking IPO.
- XP's market debut follows a slew of IPO flops in 2019. Uber, Peloton, and Lyft all slumped in their first days of trading, and WeWork canceled its IPO after analyst scrutiny sank the firm's valuation.
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its lead over the New York Stock Exchange in IPO funds raised in 2019.Advertisement
Uber, Avantor, and Lyft had the largest IPOs of the year, raising $8.1 billion, $3.3 billion, and $2.6 billion, respectively.
XP's stock traded at $34 as of 3:05 p.m. ET, significantly higher than its $27 listing price. The post-IPO pop brings the company's valuation to roughly $18 billion.XP grew by offering cheap stock and bond investing to Brazilians. The company has since expanded to offer fund management and investment banking services.
The offering comes the same day as Saudi Aramco's colossal IPO on Saudi Arabia's Tadawul exchange. The oil giant raised $25.6 billion after listing just 1.5% of its shares.Aramco stock surged about 10% in its first day of trading, bringing the company's market cap to nearly $1.9 trillion. The public debut also established Aramco as the world's most highly valued firm, beating out Apple for the accolade. XP's arrival on US markets also arrives after a number of IPO tumbles marred the public funding landscape. Uber, Lyft, and Peloton all slumped in their first day of trading, erasing hundreds of millions of dollars in investor wealth.Advertisement
WeWork canceled its highly anticipated IPO after analyst scrutiny dragged the company's valuation lower. The company, which was once the US's highest-valued startup, went from a $48 billion valuation to bankruptcy talks in six weeks.
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