The initial public offering (IPO) market of 2021 bounced back to levels not seen since the dot-com boom. According to financial markets platform Dealogic, more than a thousand companies went public, raising roughly…
$316 billion in the process.
Even then, a number of big-name companies that had planned offerings decided to remain on the bench – joining forces with a few other firms to become some of the most anticipated upcoming IPOs of 2022.
As a quick refresher, here are just a handful of the massive IPOs we saw last year:
- In February, shares of female-led dating-app operator Bumble (BMBL) rocketed well more than 60% higher in their public debut.
- In March, online gaming platform Roblox (RBLX) enjoyed a 54% first-day jump after its offering.
- In July, language-software company Duolingo (DUOL) delivered a 36% return in its first session as a publicly traded company.
- And in November, electric-vehicle startup Rivian Automotive (RIVN) raised nearly $12 billion in the largest U.S. IPO since 2014.
But the market drastically changed in the final months of 2021 and into January 2022 – especially for high-growth stocks. Spiking inflation, the omicron COVID variant and expectations for a hawkish Federal Reserve all weighed on sentiment. And what weighs on the market often also weighs on the appetite for IPO investors.
“[Downturns can cause] potential delays for IPOs,” says Kelly Rodriques, CEO of global private securities marketplace Forge. “But companies can stay private and raise more money from institutional investors. They can wait until valuations improve.”
Still, those appetites can return awfully quickly.
“Unless the markets completely fall apart…
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