Is the IPO winter finally coming to an end?
Last week saw a flurry of listings, a year after Russia's invasion of Ukraine and an increase in inflation fuelled a period of market volatility that prevented the majority of initial public offerings in 2022. According to Dealogic data, a busier week hasn't occurred in 15 months.
Last week saw the completion of five initial public offerings, including the $638 million offering of solar technology company Nextracker Inc. and the $190 million offering of Chinese sensor manufacturer Hesai Group. According to Dealogic, the total amount of money raised by the IPOs was about $1.17 billion, a sixfold increase from the previous week's stock market debuts, which brought in about $193 million.
According to IPO bankers and lawyers, if the market's warming trend continues, supported by a drop in market volatility and an increase in corporate valuations, several large companies that are in the works, such as Reddit, a social media company, and Arm Holdings, a chipmaker owned by SoftBank, may go public in the second half of 2023.
"The occurrence of these transactions has been extremely encouraging. With some of the stronger sectors driving the early supply, we see this as the first step in a broader IPO market recovery "said Rob Stowe, joint-head of Barclays Plc's American equity capital markets.
According to Dealogic, IPOs outside of companies that write blank-check acquisition deals raised the least amount of money in 2022 with $8.7 billion in proceeds, down from $154.1 billion in 2021.
The Cboe Volatility Index, a measure of investor apprehension on Wall Street, is down nearly 12% since the year's beginning, indicating decreased investor apprehension and making the introduction of IPOs simpler.
"I think we're in a market that has at least begun opening, but it's not open to all issuers yet," said Andrew Wetenhall, co-head of equity capital markets for the Americas at Morgan Stanley.
Before deciding to launch their IPO, some companies are waiting for a significant IPO recovery, according to some of the advisers. If the market recovery persists, that will probably take at least until the summer.
"It could be into the summer before you begin to see a more traditional IPO calendar. It's going to be very industry specific, thematic oriented in this next wave (of IPOs)," said Michael Wise, JPMorgan's vice chairman for equity capital markets.
(Source:www.investing.com)
Last week saw a flurry of listings, a year after Russia's invasion of Ukraine and an increase in inflation fuelled a period of market volatility that prevented the majority of initial public offerings in 2022. According to Dealogic data, a busier week hasn't occurred in 15 months.
Last week saw the completion of five initial public offerings, including the $638 million offering of solar technology company Nextracker Inc. and the $190 million offering of Chinese sensor manufacturer Hesai Group. According to Dealogic, the total amount of money raised by the IPOs was about $1.17 billion, a sixfold increase from the previous week's stock market debuts, which brought in about $193 million.
According to IPO bankers and lawyers, if the market's warming trend continues, supported by a drop in market volatility and an increase in corporate valuations, several large companies that are in the works, such as Reddit, a social media company, and Arm Holdings, a chipmaker owned by SoftBank, may go public in the second half of 2023.
"The occurrence of these transactions has been extremely encouraging. With some of the stronger sectors driving the early supply, we see this as the first step in a broader IPO market recovery "said Rob Stowe, joint-head of Barclays Plc's American equity capital markets.
According to Dealogic, IPOs outside of companies that write blank-check acquisition deals raised the least amount of money in 2022 with $8.7 billion in proceeds, down from $154.1 billion in 2021.
The Cboe Volatility Index, a measure of investor apprehension on Wall Street, is down nearly 12% since the year's beginning, indicating decreased investor apprehension and making the introduction of IPOs simpler.
"I think we're in a market that has at least begun opening, but it's not open to all issuers yet," said Andrew Wetenhall, co-head of equity capital markets for the Americas at Morgan Stanley.
Before deciding to launch their IPO, some companies are waiting for a significant IPO recovery, according to some of the advisers. If the market recovery persists, that will probably take at least until the summer.
"It could be into the summer before you begin to see a more traditional IPO calendar. It's going to be very industry specific, thematic oriented in this next wave (of IPOs)," said Michael Wise, JPMorgan's vice chairman for equity capital markets.
(Source:www.investing.com)