U.S. Stock IPO Sases With A Total of 102.3 Billion U.S. Dollars

This year, the U.S. initial public offering (IPO) market is still buzzing, and it is a boom that has not appeared in the past 20 years. The reason is that many IPO companies have issued red markets on the first day of listing and the flood of market liquidity has attracted investors. Enter, grab the honeymoon market of new stocks.

“Barron’s” reported that according to Dealogic data, as of March 10 this year, there were 302 U.S. stock IPO cases with a total of 102.3 billion U.S. dollars, which was much higher than the 35 in the same period in 2020, and the amount of funds raised was 11 billion U.S. dollars at the time. A sharp increase of 763%.

In 2020, there were 457 IPO cases in U.S. stocks for the whole year, raising a total of US$167.8 billion, breaking the record set at the height of the dot-com bubble in 1999. The IPO fundraising scale that year was US$157.9 billion.

Many IPO stocks wrote amazing performances on the first day of listing. According to research by Jay R. Ritter, a professor of finance at the University of Florida, over the past 12 months, the average return on the first day of 52 technology IPO shares has been as high as 65%.

On January 27 this year, TRX Insurance Brokers (TRX Insurance Brokers, trading code TIRX.US) was listed on the Nasdaq Stock Exchange, with an IPO price of US$4 per share, the latest on Friday (12th) The closing price was $65.07, a 1,526% increase from the IPO issue price.

It is worth noting that many companies have backdoor listings under the name of Special Purpose Mergers and Acquisitions Companies (SPAC). Of the 302 U.S. stock IPOs this year, a total of 240 companies were listed in the U.S. in the form of SPACs, accounting for as much as 80%. In the same period last year, only 13 companies were listed through SPACs.

Reuters reported a few days ago that according to data from research company Coalition Greenwich, in 2020, the U.S. has set off a backdoor listing boom for SPACs, making investment banks as underwriters full, and the combined revenue of the world’s 12 largest investment banks has surged 28% compared to 2019. Reached 194 billion U.S. dollars, a record high.