In 2020, companies that conducted an IPO received more funds than any other year, except for the record 2007, the powerful growth of the stock market after the March collapse was attracted by the US stock exchange many non-public companies and specialized firms (SPAC) created to absorb other Companies for attracted during IPO funds.
According to Refinitiv, companies around the world have attracted almost $ 300 billion during the IPO, including a record $ 159 billion in the United States. This boom includes debuts of such popular high-tech companies as the Doordash delivery service and the AirBNB short-term rental service, as well as SPAC listings seeking to buy the shares of other companies and quickly withdraw them to the stock market.
After falling in March, the US stock market reappeared again to record heights, and investors willingly buy shares of technological groups, the demand for products and services of which grew due to the fact that consumers and companies have moved to remote work and began to use other digital services. It created a good ground to go out on the stock exchange of such companies as a Snowflake or Unity Software cloud computing provider that produces video game developers software. "Shares of companies that won the shifts that have occurred are incredible demand from the wide range of investors," says David Ludwig, Head of Goldman Sachs Global Markets Department. Especially they are interested in the shares of companies in the field of high technologies, medicine and consumption, he notes.
Investors came to the conclusion that Coronavirus will have long-term consequences, especially for technological companies, says Jeffrey Banzel, Head of the Deutsche Bank share capital markets. "Reality is that these companies have become particularly important for the world. Some no longer feel comfortable, dining out of the house, and will continue to order food delivery, "he says.
Excursted about $ 76 billion collected through the SPAC listings, the sizes of the IPO in the United States and Asia increased by more than 70% compared to 2019. The volume of primary accommodation in Europe, on the contrary, was low. Compared from 2019, it fell 10% to $ 20.3 billion (this is about half of the 2018 indicator).
The world leader in attracted funds was the operator of the High Speed Railway of Beijing-Shanghai ($ 4.4 billion), overtaking, for example, Snowflake ($ 3.9 billion) and AirBNB ($ 3.8 billion). Investments in Asian IPOs, who made $ 73.4 billion, could be much higher if the Ant Group financial company did not have to stop at $ 37 billion after receiving claims from Chinese regulatory authorities.
Also increased the number of SPAC listings. Since August, the number of their IPOs has exceeded the number of ordinary primary accommodations in the United States (for example, in December - 39 against 21). It is expected that in 2021 IPO will hold new companies of this type. At the end of December, the Japanese Softbank filed documents on an IPO of his own SPAC on NASDAQ. Bankers and investors are currently followed whether this phenomenon will spread outside the United States, James Palmer, Head of European Joint-Stock Capital Markets Department in Bank of America, will spread.
Some investors began to worry about the appearance of the signs of the bubble, which are expressed including in a sharp increase in quotations on the first day of trading after placement, as was in 2000 and 2007. At airbnb, for example, they jumped by 112%. However, John Leonard, director of global stock markets Macquarie Asset Management, believes that, although value estimates and overestimated, now they are associated with a strong inflow of income. "People are not trying to evaluate the company only in income per click or for the show," he says.
Translated Victor Davydov