The late, great artist Prince famously sang, "Tonight, I'm going to party like it's 1999!" And this year, the initial public offering (IPO) market is taking that advice. It's partying like it's 1999... and there's no sign it's about to stop. In the pre-pandemic world of long ago, 2020 was poised to be one of the busiest years in a long time for IPOs. But when COVID-19 started throwing haymakers in February and March, we weren't sure that was going to be true anymore. In fact, the markets hit the pause button on IPOs for roughly two months after touching the bottom in March. But as the broader markets regained their footing and soared higher, IPOs took off. And they have only continued to gain speed. A Stampede of UnicornsThe enthusiasm is palpable. In fact, December has been one of the busiest months for IPOs in two decades. It's all part of a closed loop of optimism. As the major indexes soar to new highs, more companies feel comfortable jumping into the public waters and riding the wave higher. We've seen a bevy of unicorns - companies valued at $1 billion or more at IPO. And there have been some jaw-dropping one-day winners as the pent-up demand for these issues triggers monster runs. It's been one rocketing debut after another. Unity Software (NYSE: U) and Palantir Technologies (NYSE: PLTR) had fantastic debuts. In June, Royalty Pharma (Nasdaq: RPRX), which collects royalties from pharmacies, was briefly the largest IPO of the year. It was then overshadowed by Snowflake (NYSE: SNOW). The company raised $3.4 billion on its IPO and became the largest software IPO ever! C3.ai (NYSE: AI) opened up 138% above its IPO price. |
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