“There is a whole lot of capital around“–Paul Ebeling
Wall Street’s record-breaking run for stock market flotations shows no signs of slowing down.
US IPOs have already totaled $171-B, eclipsing the Y 2020 record of $168-B.
Driving the IPO rush are high corporate valuations in the stock market, inflated by the Fed’s low-interest rates and monetary stimulus in the wake of the VirusCasedemic.
This has fueled a wave of speculation that benefit not only traditional companies going public, but also special purpose acquisition companies (SPACs) formed strictly to raise money through IPOs.
The IPO rush is set to reach new heights in 2-H of Y 2021.
A Signal: If the markets hang in where they are now, we are going to be incredibly busy this Summer, and into the Fall with IPOs and we expect a busy Y 2022.
Excluding proceeds from SPAC IPOs, traditional listings of big names is keeping Y 2021 on track to be the biggest year for IPOs.
Capital markets bankers and lawyers estimate that companies could end up raising close to $50-B through traditional IPOs, excluding SPACs, before the end of the September Quarter.
IPO proceeds have touched $24.1-B in Q-2 through 15 June 15.
By the end of this year, US IPOs could raise $250 to 300-B +, a staggering sum once considered unthinkable, according to investment bankers, there has really been an explosion in the size of transactions to.
There looks to be an adequate amount of capital out there to help support that level of activity.
Have a happy, healthy weekend, Keep the Faith!