Republished with full copyright permissions from The San Francisco Press.

The upcoming initial public offerings (IPOs) on Wall Street are generating considerable excitement, injecting much-needed vitality into the market. However, beneath the surface, several concerns have emerged.

Arm: The Hottest IPO with Lingering Doubts
As the much-anticipated year’s biggest IPO, Arm has captured investors’ attention. Backed by a $100 million commitment from leading chipmaker Goldman Sachs, the company’s order book closed a day earlier than expected, and we’ve even heard rumors of a possible price above the initial range of $47-to-$51 per share. However, some market observers express concerns regarding Arm’s valuation, which places it 18 times above its revenue. These doubts are compounded by the phenomenal success of rival chipmaker Nvidia. Nevertheless, the excitement surrounding Arm’s IPO remains palpable, especially considering it also draws interest from TSMC and Nvidia.

Instacart’s Uncertain Journey to the Public Market
Instacart, the popular grocery delivery service, is set to go public soon, but on a more cautious note. The company’s valuation has shrunk to less than one-quarter of its worth two years ago, reflecting a slowdown in revenue growth. Another marketing-automation platform, Klaviyo, is also expected to follow suit, albeit at a valuation lower than its 2021 level. Despite the investor frenzy, Instacart’s post-IPO valuation pales in comparison to the $64 billion implied by SoftBank’s recent acquisition of a quarter of the company. These developments highlight the turbulent nature of the IPO market and the complexities involved in determining a fair valuation.

Birkenstock’s Battle Against Counterfeit Products
Amidst the IPO buzz, German footwear brand Birkenstock is preparing to go public, facing unique challenges compared to its fellow market debutants. Over the years, Birkenstock has grappled with the protection of its intellectual property rights, contending with numerous copycat products flooding the market. Birkenstock’s IPO filing addresses the issue of knock-off products being sold on e-commerce platforms, which not only compromises its reputation but also disrupts its sales and brand perception. The company emphasizes the potential damage that counterfeit products pose to its brands and overall business standing.