2020 Is the Best Year for IPOs
2020 is the best year for the initial public offerings by the end of September, according to the information provided by Michael A. Gayed. If the trend continues until the end of the year, it will outperform even the dot-com era, which is characterized by the abundance of initial public offerings, in terms of money raised by US IPOs.
A New Era of Dotcom?
In addition, first-day returns of these IPO's are also higher than ever since 1999. However, analysts say the IPO situation is nowhere near the mania that gripped the market 20 years ago. Despite the huge number of IPOs and record gains, experts point out that part of this may be due to the caution of IPO writers.
During this year IPO underwriters were significantly intimidated by the spring market fall and were unsure of investors' sentiment. Therefore, they deliberately set lower initial prices than would be expected in more stable and favorable conditions.