In a year when the epidemic subverted financial markets and the global economy, American companies and their major shareholders raised a record $435 billion by issuing shares.
The data show that this figure is much higher than the previous record of $279 billion in 2014. About 1/4 of this year's financing came from traditional IPO, raising a record $100 billion-if 2014 Baba is excluded.The heavyweight IPO is the highest in history.
What is different from previous years is that the returns of the big IPO in 2020 are also good. Upstarts such as Snowflake Inc, Airbnb and Unity Software soared as investors ignored economic, political and corporate profit uncertainty. Companies that raise more than $1 billion are currently trading an average of 81% higher than their offering price, better than small-scale IPO.
"We often see deals that exceed fundamental value," said Paul Abrahimzadeh, co-head of North American equity capital markets at Citi. Record high valuations are directly related to low interest rates. Anything that grows in a low growth environment will receive a huge premium. "
The heavyweight listing of technology companies has attracted the attention of investors, but the biotechnology industry has the largest amount of financing. More than 100 companies in the biotech industry have gone public this year, raising a total of about $23 billion, followed by $19 billion in the technology sector, according to the data.
More than 70 foreign companies have listed in the US this year, raising more than $21 billion, the highest level since 2014, most of them Chinese companies.
According to the data, Morgan StanleyAnd Goldman Sachs GroupThis year, it has underwritten the most share offerings, each with more than 10 per cent of the traditional IPO market.
Wall Street has also seen a surge in the number of listings of special purpose buyout companies (SPAC), becoming a hot spot in the market. Going public through the acquisition of SPAC can avoid expensive and time-consuming IPO programs. Credit Suisse and Citigroup have underwritten the most SPAC listings this year.
More than 240 SPAC have gone public in the US this year, raising $81 billion for potential acquisitions. Although there are some successful mergers in this area, such as Nikola and DraftKings, these IPO generally perform poorly. The average trading price of SPAC is only about 15 per cent higher than the price of IPO.