IPOs in the Prime Unicorn Index

Yesterday, Instacart’s IPO marked the first public offering of a Prime Unicorn Index component in 18 months. Similar to Arm’s recent IPO, it appeared to be a success, with the stock opening at $42, 40% higher than the initial IPO price of $30, and closing at $33.70, up 12%. Under 8% of outstanding shares were floated in the offering, but it provided much-needed liquidity to employees and investors. 

It appears that we are finally emerging from the slow IPO market that has marked the past two years. Klaviyo looks to be the next company to go public, while components such as Databricks and Abnormal are also preparing for potential IPOs. With the IPO market heating up, how does this affect the Prime Unicorn Index?

Since the Prime Unicorn Index is a private market index, companies will eventually be removed following a public offering. However, they remain in the Index until the next reconstitution period or after a specified number of trading days, and their price is updated daily to reflect closing prices.

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