The record low-interest-rate environment set the stage for many companies to make their stock market debuts. So, read on for details on the performance of these names. Recent IPO stocks E-Home Household Service (EJH), Pop Culture Group (CPOP), Tian Ruixiang (TIRX), and Sentage Holdings (SNTG) have plunged in price since they began trading. However, not all newly listed stocks have generated momentum.
Ride-hailing giant Didi Global Inc, which completed its $4.4 billion IPO in New York in June, has said it will move its listing to Hong Kong, as China pushes many of its companies to go public closer to home.A low-interest-rate environment led a record number of private companies to administer IPOs in 2021.
#IPOS 4 CRACKED#
Securities and Exchange Commission has cracked down on the New York listings of Chinese firms, requiring more disclosures. Still, investment bankers say the recent lukewarm financial performance of many IPOs means that this year's bonanza is unlikely to be repeated in 2022, especially if stock markets lose some steam because of inflation and other economic concerns.
#IPOS 4 SOFTWARE#
The IPO pipeline for the first quarter of 2022 is strong, with social media platform Reddit, transportation tech start-up Via, software maker Cohesity and private equity firm TPG having filed with regulators to go public. But SPACs are not going away," said Eddie Molloy, co-head of equity capital markets in the Americas at Morgan Stanley.
"The peak pace of (SPACs) activity was never sustainable and now the market is consolidating. The main SPAC exchange-traded fund, the Defiance Next Gen SPAC Derived ETF, has shed 25% of its value year-to-date after peaking in February.
They had a roller-coaster ride as investor enthusiasm for them at the beginning of the year turned to disappointment because of their poor returns. SPACs, which went public mostly in New York, raised a total of about $160 billion this year, accounting for 28% of the total proceeds raised by U.S. "It has been an extraordinary year for equity formation globally - dare I say one that is unlikely to be repeated any time soon," said James Fleming, global co-head of equity capital markets at Citigroup Inc. Other major ones included Chinese online video company Kuaishou Technology, with $5.4 billion in proceeds, and Korean e-commerce giant Coupang Inc, which raised $4.6 billion. IPO since Alibaba Group Holding Ltd in 2014. There were 426 technology IPOs launched this year and 332 healthcare-related deals, collectively accounting for almost 42% of IPO proceeds raised by companies globally, according to Refinitiv.Īmong the biggest offerings in 2021 was electric-vehicle maker Rivian Automotive Inc, which raised over $12 billion in its market debut in November, making it the largest U.S. The biggest sectors driving IPO volumes were technology and healthcare. This is because many investors were willing to pay top dollar to buy into these companies in private fundraising rounds in the run-up to their IPOs. Some bankers cautioned that shares of some of the companies that went public in 2021 are still trading at historically high valuations, even if they took a hit after their IPO. IPOs, is down about 8% for the year, compared with a 25% rise in the S&P 500 index. The Renaissance IPO index, which tracks the average performance of newly listed U.S. Shares of Swedish vegan milk maker Oatly Group AB, which raised $1.4 billion in its IPO in New York in May, are down 53%, while those of British food delivery app Deliveroo Plc, which raised 1.5 billion pounds ($2.1 billion) when it listed in London in March, are down 46%. Those who bought into the $$1.2 billion IPO of lending start-up Affirm Holdings Inc, backed by PayPal Holdings Inc, in January have more than doubled their money, versus a 25% return in the S&P 500 index.īut many IPOs soured. "It was a truly euphoric capital market when you put it in the context of new issuance activity, and in particular in the creation of new public companies," said Andrew Wetenhall, co-head of equity capital markets in the Americas at Morgan Stanley. Companies ranging from technology start-ups to blank-check acquisition firms flooded the market with offerings, capitalizing on investors' willingness to place speculative bets as low interest rates and the re-opening of economies thanks to COVID-19 vaccines fueled their appetite for risk.
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