Sectoral Focus and Initial Public Offering Performance in PropTech and ConTech Industries

This study examines how technological specialization and innovation shape Initial Public Offering (IPO) performance among PropTech and ConTech firms. Using market-adjusted returns across eight post-listing horizons—from Day 1 to Month 12—the analysis evaluates how 16 distinct technological focus areas influence short- and medium-term valuation outcomes, alongside firm-level and macroeconomic controls. The results show that scalable, software-driven business models focused on workflow automation, data analytics, and transaction efficiency consistently outperform the benchmark in the early post-IPO period. Technologies with longer adoption cycles or higher integration requirements display delayed recognition, becoming significant only at later horizons. A complementary specification incorporating market perception and innovation finds that patent activity is positively associated with returns up to Month 6, while attention-based search activity exerts only a brief initial effect. Together, the findings highlight the heterogeneous market reception of different technological profiles and demonstrate how innovation depth, scalability and market visibility jointly shape IPO valuation trajectories in these sectors. The study provides new evidence on technology-driven IPO dynamics and offers practical insights for investors and industry participants.