Sacks Parente Golf soared on its first trading day Aug. 15. The IPO stock gained an astonishing 614% in a one-day glory run from an IPO price of $4 per share.
That made it the best first-day performance for any U.S. IPO so far this year, according to Dow Jones Market Data.
But the next day, the glory was gone. The IPO stock dived 84% and is now trading below the initial offering price, as seen on IBD MarketSmith. Often, IPOs see a frenzy of buying on the debut and give back much of that first-day push. But it's quite rare for a stock to rise so much on its first day of trading and give it all back so quickly.
The company offered 3.2 million shares, according to its SEC filing. It also registered a resale of 1.56 million shares by some shareholders and stated that it would not receive anything from the resale.
Sacks Parente explained in its prospectus: "Sales of the shares of our Common Stock registered in this prospectus and the selling stockholder prospectus may result in two offerings taking place concurrently which might affect price, demand, and liquidity of our Common Stock."
IPO Stock Raises $12 Million
Sacks Parente makes golf shafts, grips and other products used for golfing. The IPO stock is in the leisure products group but does not have any technical ratings yet due to insufficient trading data.
The company has a technology-forward approach and boasts several innovations such as the First Vernier Acuity putter, Ultra-Low Balance Point putter technology and weight-forward Center-of-Gravity design.
In 2022, the company started making golf shafts and came up with ultralight carbon-fiber putter shafts. It has plans to expand into golf apparel and other accessories.
Sacks Parente products are available through the company website, resellers and distributors in the U.S., Japan and South Korea.
Net proceeds after underwriting costs and associated expenses were $11.6 million from the initial public offering.
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