American IPO market attracted record $ 171 billion in six months
According to the Reuters publication, the boom IPO is backed by high company ratings on the stock market, low interest rates and a monetary stimulus from the Federal Reserve System (FRS) after the covid-19 pandemic. This has already caused a wave of speculative madness, which brings benefits not only to traditional companies, which want to become public, but also to the company SPAC (Special-purpose Acquisition Company) created specifically for the collection of money with the help of an IPO.
Without accounting for revenue from the first public distribution of SPAC-type companies, traditional listings of large companies, including the South Korean e-commerce giant Coupang Inc., collected $ 67 billion this year. Considering this, in 2021 it will be possible to become a record number of such IPOs.
According to Jeff Bunzela, the head of the global capital market Deutsche Bank, $ 500 million was once a big IPO, but today those numbers don’t surprise the market at all. Thus, a real explosion occurred in the size of the transaction. Bankers and capital market analysts estimate that the company may end up attracting nearly $ 50 billion with the help of traditional public first placements, with the exception of SPAC, at the end of the third quarter.
It is expected that this "golden fever" will reach new heights in the second half of 2021, when a number of well-known startups, such as the Chinese conglomerate Didi Chuxing Technology, fintech company Robinhood Markets and an automaker manufacturer Naomi hit the markets.