The year 2020 has brought a lot of surprises: a global pandemic, an economic downturn, millions of jobs lost, and withdrawal of American leadership from the global stage. But it hasn’t slowed down the initial public offering (IPO) momentum and those looking to profit from IPOs.
- This year’s record IPO activity could rival the IPO frenzy of the dot-com era of the late 1990s.
- Despite political and economic uncertainty, U.S. exchanges are still leading IPO activity in terms of the number of deals and total proceeds.
- Investors have favored special purpose acquisition companies (SPACs) as a vehicle of choice, focusing on cloud-based computing companies and pandemic-proof businesses, even as Chinese companies may move away from U.S. listings.
In fact, 2020 could turn out to be both the biggest year ever for IPOs as well as one of the most innovative years in terms of the increasing reliance on SPACs and direct listings. The U.S. exchanges have accounted for the vast majority of these IPOs, making up 82% of deals and 87% of proceeds in the third quarter of this year, according to the Source…