Most IPOs Since 1999.
What a year. Despite a world-wide pandemic, Wall Street managed to pull-off a record number of initial public offerings, raising $167.2 billion on U.S. exchanges in 2020. The previous record was $107.9 billion, raised in 1999.
Dealogic reports 454 offerings through Dec 24th for a total of $167.2 raised. Remarkably, $67.3 billion of that was raised in the fourth quarter–nearly six times the total for the first three months of the year. Airbnb Inc., DoorDash Inc., Unity Software (a Virtual Reality VR Company) and big data company Palantir, all came to market. And, according to bankers, there are many more companies currently in the pipeline.
The bears point to this recent IPO frenzy to suggest the market has reached its top. They stress that the comparison with 1999 is important, given that what followed in 2000 was a bursting of the technology bubble.
Nonetheless, the bulls remain optimistic. Many investors point to interest rates that remain at record lows–and will continue to remain at record lows for the foreseeable future. They say there are few places to invest other than U.S. equities. As such, there could be even more inflation in U.S. equity prices in the coming months.
From bitcoin exchanges…to grocery store delivery services…to the popular game Roblox, there are many more companies hoping to capitalize on the momentum in the coming year.
So, cheers to 2021!