The ability of companies to go pubic via an initial public offering is very cyclical. When the market is on the number of IPOs skyrockets and the first day “pop” in the initial offering price increases as well. 2020 was a very strong IPO market and 2021 has started off with a bang as well. The dramatic first day “pops” in the offering prices tells us how strong the demand is now for new equity offerings. Markets like this don’t tend to last. So if you have been contemplating an IPO now is the time. Get to it!
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The IPO Market Remains Strong
As if there was any doubt, new data shows just how frothy this year’s market for tech initial public offerings is compared to past years. Shares of tech IPOs this year jumped an average of 63% on their first trading day, nearly double the first-day pop for last year’s tech IPOs, according to data from Dealogic. And last year’s average first-day pop of 34% was up from 26% in 2019.
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