Episode 56: IPO Market EOY Results are in!
This week we closed out news on the IPO market since there won’t be any new activity during the holiday season.
Key Takeaways:
US IPO Count Rises 35% to 216 Deals
Proceeds Jumped 68% in a COVID-19 Market Rebound
Average IPO Gains 75%, the Highest in 20 Years, with Strong First-Day and Aftermarket Returns
Healthcare and Tech Account for Nearly Three-Quarters of IPO Issuance
Record 20 IPOs Raise $1 Billion Led by Airbnb, DoorDash, and Snowflake
Renaissance IPO Index Skyrockets 113%, Outperforming the S&P 500 by Nearly 100 Percentage Points
IPO Alternatives Cover Ground in Historic Year for 242 SPACs and High-Profile Direct Listings
Pipeline and Shadow Backlog Signal Another IPO Boom Year in 2021
The $900 billion Stimulus bill that Congress passed will provide a lot of help to the economy although the market isn’t really digesting the enthusiasm, as it has been mostly down this week. Markets are grappling with the next 3-4 months of Covid winter, driving consumer confidence down, while concerns are being raised about the potential impact of the new covid strain.
Baird initiated coverage of The RealReal with an outperform rating, sending shares of the consignment retailer up as much as 10% to a record high. The Wall Street firm called RealReal a "compelling open-ended growth story."
Apple once again appears to be seriously looking at making a car. Reuters reports that Apple is pursuing production of a passenger vehicle by 2024 as well as the creation of self-driving systems and a “breakthrough battery technology.” The report is vague on how it all comes together. It’s not clear that all of this tech is going into the first passenger vehicle Apple hopes to make, but after previously shutting down it’s plans, Apple is now considering vehicle production once again.
Market Close
Dow 30 30,015.51 -200.94 (-0.67%)
S&P 500 3,687.26 -7.66 (-0.21%)
Nasdaq 12,807.92 +65.40 (+0.51%)
IPOs
The Securities and Exchange Commission will allow companies to raise capital through direct listings, opening the door to a new alternative to the traditional initial public offering.
The SEC approved the new kind of direct listing, which could help startups save on bank fees and capture more of the gains in their share price when they go public.
SoftBank filed to raise between $500 million and $600 million via an IPO of its first SPAC, according to Axios. The firm is said to be prepping at least two additional SPACs
Have a wonderful rest of your week, and Merry Christmas and Happy Holidays.