Navan, Inc. (NAVN), a corporate travel and expense-management software company, saw its shares plummet 12% during its Nasdaq debut on Thursday, signaling a cooling investor appetite for initial public offerings (IPOs) amid challenging market conditions. The stock's sharp decline comes despite the company raising $923.1 million in what was touted as the largest IPO since September.

The company priced its IPO at $25 per share, the midpoint of its proposed range, valuing Navan at approximately $6.2 billion. However, this valuation already represented a significant discount from its last private funding round in October 2022, which valued the company at $9.2 billion. The further drop in share price during its public debut suggests that investors remain cautious about unprofitable tech companies in the current economic climate.

Market observers note that Navan's disappointing debut may reflect broader concerns about the IPO market, which has been impacted by the ongoing government shutdown and general economic uncertainty. While some recent tech IPOs have seen strong performances, investors appear to be growing more discerning, particularly for companies that are not yet profitable. Navan's struggle to maintain its IPO price could serve as a warning sign for other private companies considering going public in the near term.