The S&P 500 advances, but does not chase away volatility
New York

15/09/2021 – 22:47

During the session on Wednesday, the stock markets of the United States welcomed 14 IPOs, among them the sportswear manufacturer On, with investors such as Roger Federer, who captured 746.4 million dollars with its premiere on the New York Stock Exchange (NYSE). At the beginning of this month and during the next fall, more than a hundred companies are preparing to launch their respective public sales operations (IPO) with a potential collection of up to 30,000 million dollars, according to the forecasts of Renaissance Capital.

“We expect between 90 and 110 IPOs in the remainder of the year, which puts 2021 on the path of some 375 deals that will raise more than $ 125 billion. Regardless of the activity this fall, 2021 will be the highest grossing year. capital for IPOs in history and the most active in terms of number of operations since the bubble of 2000, “says William K. Smith, co-founder of this consultancy.

Until the present year, the record in collection on this side of the Atlantic occurred in 2014, when the Chinese Alibaba landing on the NYSE reached a collection of 21,767 million dollars and boosted the total capital accumulated by the 275 IPOs to 85,300 millions of dollars.

Wave of premieres

The portfolio of premieres in the coming weeks features a number of particularly powerful tech unicorns, consumer brands and biotechs. Among them are several IPOs that seek to receive around 1 billion dollars from the public sale of shares, such as the restaurant payment processor Toast or the customer service platform Freshworks. Other companies in the spotlight include eyewear retailer Warby Parker, which is preparing a direct IPO.

In the first nine months of the year, the average IPO in the US has generated an average return of 31.7% on its first day of listing and 12% since its debut on the stock market. The Renaissance IPO Index, an indicator weighted by the performance of the main IPOs on this side of the Atlantic, has generated a return of 5.5% throughout the year, compared to 18.3% accumulated by the S&P. 500.

Wall Street IPOs Capture Record Levels of Capital Over the Year

On the other hand, the SPAC, also known as “blank check companies”, have broken all records, with a total of 418 premieres that have raised 109,000 million dollars so far this year. However, these entities will have a more difficult time compared to the euphoria of early 2021 due to a general decline in their returns and increased regulatory scrutiny by the Securities and Exchange Commission (SEC). ). Even with these challenges, some 30 SPACs went public in August, less than a third of the average for the first quarter of 2021, but still a record level compared to all previous years. So far this year, 118 SPACs have completed mergers and another 136 operations are pending approval by their shareholders.

270 Chinese companies, quarantined

The SEC could suspend US trading in the shares of some 270 Chinese companies between now and 2024 unless they allow their auditors to be inspected by US regulators, according to the chairman of the regulatory agency, Gary Gensler. Gensler referenced in a WSJ editorial to legislation that addresses loopholes in the Sarbanes-Oxley Act of 2002 and that prohibits a company from trading its shares if a foreign entity prevents its auditor from being inspected for three consecutive years.

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