Companies that entered the New York Stock Exchange through IPOs this year are continuing their spectacular initiation ceremonies. Analysts say that the IPO market, which fell into the worst recession in history last year, is turning to recovery after breaking the sluggish trend this year.
According to Bloomberg News on the 10th (local time), Next Tracker, a solar equipment company listed on the Nasdaq market the previous day, closed at USD 30.46, up 26.92% from the initial public offering price. The market capitalization was $4.5 billion based on the closing price. Next Tracker raised $638 million from the listing. This is well above the expected public offering ($535 million), and is the best performance among companies that have made IPOs on the New York Stock Exchange this year.
Analysts say that the IPO cold wave has begun to lift as Next Tracker, which was expected to serve as a wind gauge in the IPO market this year, succeeded in the box office. Bloomberg reported that Next Tracker created a new success story in the IPO market, which fell into the worst recession in history last year.
The outlook for this year’s IPO market is optimistic. LCompanies that withdrew their offerings due to the stock market recession last year are continuing to try again. Bloomberg analyzed that the trend of Chinese companies, which have turned to the Hong Kong and Shanghai stock markets due to worsening conflicts between the U.S. and China, is getting stronger in the New York stock market.
Major New York indexes continue to rise as funds flock to the U.S. stock market in anticipation of an end to austerity. Usually, when stock trading volume increases, the IPO market also becomes active. On the New York Stock Exchange (NYSE), the Dow Jones Industrial Average rose 2.1% in the month of last month, and the S&P 500 Index rose 5.4%, both of which recorded their best monthly performance since November last year. Some observers say that if further improvements in macro factors such as easing inflation are confirmed, the recovery pace of the IPO market could be faster this year.
The U.S. IPO market enjoyed the largest-ever boom in liquidity over the pandemic period. It led the IPO boom by investing in SPAC and meme culture. However, last year, liquidity dried up due to high-intensity tightening by central banks in each country, turning into the largest recession ever. Last year, the size of the U.S. IPO market was only $8.6 billion, the lowest level in 20 years.
