The initial public offering (IPO) market remains red-hot right now. For investors in Vita Coco (NASDAQ:COCO), expectations were that today could be a very good day. After all, the coconut beverage maker did price the COCO stock IPO well below the expected range yesterday.
Despite marketing COCO stock at the $18 to $21 per share range, Vita Coco launched today at $15 per share. Despite rising in earlier trading, this has turned out to be a lukewarm start for Vita Coco. Currently, shares of COCO stock are trading down roughly 2.6%.
Most initial public offerings provide significant volatility on opening day. Today, COCO stock did rise as much as 10% in early trading before falling below its IPO price. However, investors considering IPOs need to be prepared for a range of scenarios, such as what we’ve seen play out today. As the market engages in price discovery on newly listed companies, fluctuations can be significant. Accordingly, this is a stock that’s likely to see volatility for some time from here.
That said, let’s dive into a few things investors may want to know about Vita Coco.
What to Know About Vita Coco Following the COCO Stock IPO
- Vita Coco is a coconut beverage maker focused on coconut water and other healthy, natural beverages.
- The recent hype around coconut water as a health trend has prompted investors and celebrities to pile into this segment.
- However, reports show that coconut water sales have declined 16% last year.
- Thus, the growth outlook for Vita Coco and this segment remains mixed right now.
- This outlook appears to have driven yesterday’s surprise pricing announcement.
- Shares of COCO stock began trading today, opening higher than the $15 IPO price set yesterday.
- Currently, shares of COCO stock are trading down more than 2% from these levels.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.