In February & March, investors were running away. Since April, investors just can’t have it enough. When it rains, it pours!
Around $25 billion has already been raised from investors at the NYSE and Nasdaq. There are several other IPOs lined up for the second half of the year.By: Ashutosh Sinha
The best known, the lesser known, and the somewhat unknown. The IPO market has been a story of that for the last few months. A motley group of companies is looking to make the most of the change in sentiment as they raise money from investors.
Around $25 billion has already been raised from investors at the NYSE and Nasdaq. There are several other IPOs lined up for the second half of the year and it could be one of the best years for the primary markets. The recent high, in 2014, when companies had raised $72 billion on the NYSE still seems some distance away.
Among the big names that are offering their shares in the market are the 180-year-old firm Dun & Bradstreet, a Chinese Bitcoin gear market, and an LGBTQ dating platform, a clutch of pharma companies, and several others. The recent mom-and-pop rally is believed to have got more investors into the market which is making the primary market more happening than before.
After the billions that some of the bigger IPOs raised, there is a spate of others like Albertsons, Fusion Pharmaceuticals, Agora, Akouos, Ebang International, Polypid, and several others which are at different stages of the IPO roadmap.
2020 Biggest IPOsRich harvest for investors
By all accounts, investors have reaped a good harvest with some of the stocks that have listed in recent weeks. The shares of Royalty Pharma jumped well over 50 percent as the company debuted trading this week. Pharma and biotech companies have been the toast of the market and several others are waiting for their opportunity to take the company public.
The dizzying tech rally has added fuel to the IPO fire too. Smaller tech companies are hoping to make good of the opportunity while others like Zoominfo, Vroom, Shift Payments and Pliant Therapeutics are hoping that the sentiment will rub off on other sectors too.
The appetite for primary offerings has been strong enough that even a 180-year-old company like Dun & Bradstreet is looking to raise about $1.4 billion with a share sale. With its database of over 360,000 companies and over 90 percent of Fortune 500 companies as its clients, the company could be valued at over $8 billion.
Recent listingsAfter the market sell-off in February-March, there has been a strong revival in IPO activity. Among the companies that could list during the second half of the year include Doordash, Snowflake, Instacart, Wish, Dun & Bradstreet, and several others.
Battling for market share
Companies are vying for a larger share of the investors’ wallet but a different battle for market share is unfolding at the stock exchanges.
The two premier stock exchanges, Nasdaq and NYSE, are engaged in a battle to have more companies choose their platform for their IPOs. As the first half of the year looks set to close, Nasdaq has trumped NYSE.
Companies have raised about $25 billion so far from investors on the two markets with Nasdaq a little ahead in the race. During 2019, companies had raised $35.58 billion on Nasdaq and $26.82 billion on NYSE. Traditionally, NYSE has been the preferred choice for companies to raise money.
In February & March, investors were running away. Since April, investors just can’t have it enough. When it rains, it pours!
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