TPG Sees Shares Surge on First Trading Day

TPG’s shares have jumped in their first day of trading, the Financial Times reported Thursday (Jan. 13).

The private equity group, co-founded by billionaires David Bonderman and Jim Coulter, has become the newest company to capitalize on rising values, tapping public markets to finance growth.

TPG opened at $33 a share on Thursday, which put its market capitalization above $10 billion. Late on Wednesday, TPG’s price for the initial public offering (IPO) was $29.50 a share. With this news, TPG becomes the biggest company to go public thus far in 2022.

However, the IPO market hasn’t been going well lately. While companies raised a record-breaking $150 billion last year, many have had a hard time keeping investor enthusiasm up after the listings were done.

Per the FT report, almost two-thirds of the businesses that went public in 2021 ended the year trading below their offering prices. Some also slid further down the stock market in a sell-off this month.

“The markets are turbulent,” TPG CEO Jon Winkelried told the FT. “This IPO was a high-quality institutional book from a company that’s highly profitable and has been around for 30 years. It’s just a different part of the IPO market.”

Some companies have been rethinking their strategies because of that. Justworks, a software company, has set its IPO back for now because of the volatility.

PYMNTS wrote that Justworks did away with its plans to sell 7 million shares between $29 and $32, which would’ve garnered up to $224 million, according to a filing from earlier this month.

See also: Justworks Cites Market Conditions for US IPO Delay

Justworks operates a scalable cloud-based platform, which helps human resources leaders at small businesses with payroll, benefits and compliance issues. The company was planning to list on the Nasdaq, but this was delayed due to market conditions.