The IPO (initial public offering) market has been in a downturn for much of the last year amid rising interest rates and the war in Ukraine. Data shows that could be about to change
A recent wave of stock sales by companies suggests there will be a wave of IPOs in September, putting an end to a weak market for debuts that has lasted almost two years.
Since the end of April, publicly traded companies and their investors have sold stock worth more than $28 billion through follow-on and secondary sales, according to data provider LSEG Deals Intelligence.
That compares with $7.3 billion over the corresponding period a year ago.
Bankers say this spike bodes well for the IPO market, since both new listings and secondary stock sales rely on strong investor demand.
Since the start of 2022, the IPO market has been in a downturn as investors fear U.S. interest rate hikes following Russia’s invasion of Ukraine.
But volatility has now subsided with investors predicting the Federal Reserve will end its recent spate of rate hikes later this year.
