A pair of deals opened up the IPO market amidst the lengthy government shutdown and delivered disappointing debuts.
MapLight Therapeutics Inc. (MPLT): Neuroscience IPO Launches with a Bright Start, Fades Throughout First Week
MapLight Therapeutics (ticker: MPLT) delivered a solid debut to start, selling 14.75 million shares at $17.00 per share and opening at $19.00, a first-trade gain of 11.7%. Trading was orderly throughout the session, with shares reaching an intraday high of $20.86 before closing near the open. Roughly 3.3 million shares changed hands on opening day — a notable debut that took place on a Monday, an uncommon start day for IPOs.
Despite the strong launch, the stock slipped below its $17.00 issue price by its third trading session, dipping as low as $15.00 before rebounding later in the week to finish Friday just under the offer level.
Investor feedback indicated robust participation from mutual funds and sector-focused biotech investors, supported by a $40 million anchor investment from T. Rowe Price and a Goldman Sachs–led private placement that helped strengthen the deal’s foundation.
Navan Inc. (NAVN): Mispriced AI Travel Platform Stumbles in Debut
Navan’s IPO priced right at the midpoint of its $24–$26 range, but the stock never came close to that level once trading began.
Navan (NAVN US) opened at $22.00, about 12% below its issue price, making it the worst-performing IPO at first trade in 2025. Shares continued to slide throughout the debut session, hitting an intraday low of $19.74 (down 21%) before closing at $20.00, marking a 20% first-day decline—the weakest debut since Metagenomi Inc. (MGX) dropped 31.3% on its first day in February 2024. The stock was considered multiple-times oversubscribed but our sources failed to provide price guidance –often times an ominous sign for a deal ahead of a debut.
The disappointing performance highlights the delicate balance between innovation premium and execution risk for AI-driven business models. Going forward, stability may hinge on long-term investor support, though many IPO participants tend to rotate quickly out of early underperformers. The silver lining: Navan’s $922 million cash raise ranks among the largest IPO proceeds of 2025, giving the company a strong balance sheet and significant runway for growth. To shift sentiment, however, management will need to deliver operational traction and financial clarity in its first quarterly report as a public company.
Looking ahead to this week, five IPOs are set to price—Beta Technologies Inc, Exzeo Group Inc., BillionToOne Inc., Grupo Aeroméxico S.A.B. de C.V., and Evommune Inc.—with the overall deal quality taking a clear step up from this past week.