Traders operate on the floor of the New York Stock Exchange (NYSE) on July 21, 2021.
Brendan McDermid | Reuters
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IPOs have come back on track for a record year as companies battle to IP on an all-time high stock market.
In 2021, US IPO revenues to date have reached $ 89 billion, a 232% increase over the same period last year, according to data from Renaissance Capital. This year to date, the market is already at record levels in terms of fundraising, and it is expected to top the all-time high of $ 97 billion in 2000 amid the dot-com boom Renaissance.
“The valuations that companies can achieve in the IPO market are historically high,” said Matthew Kennedy, senior IPO market strategist at Renaissance Capital. “We attribute a lot of this to decades of building unicorns and VC funding.”
Businesses, from home-stay technology to healthcare innovators to e-commerce players, are capitalizing on a booming stock market that’s continually refreshing its balance sheet due to optimism about the economic reopening. The IPO boom also coincides with the growing number of retail investors eager to own a piece of their favorite company.
According to Renaissance Capital, a total of 250 IPOs were priced in in 2021, 191% more than in the same period of the previous year and the total number of IPOs for 2020 was 218.
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In at least nine IPOs this year, their shares have doubled compared to their offer prices. E-Home Household Service, a Chinese housekeeping and appliance service company, has grown more than 300% since it launched in May.
Biotech Verve Therapeutics, ZIM Integrated Shipping, an Israeli container shipping company, and dLocal, an online payment company in emerging markets, are among the most successful IPOs this year.
The rebound in traditional IPO activity came as the SPAC market cooled in the face of increased regulatory pressures. After a record quarter in the first quarter, SPAC issuance fell 87% in the second quarter as regulators stepped up search efforts, according to Barclays data.
– CNBC’s Gina Francolla and Nate Rattner contributed to this story.
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