THIS IS YOSSINGKUM
Initial public offering activity in the US is likely to continue improving throughout this year, according to a report from Goldman Sachs.
“We expect the US economy to continue growing, the nominal yield on the two-year US Treasury bond to decline modestly, and valuations to rise. remain elevated relative to history,” Goldman Sachs strategists including Ryan Hammond and David Kostin wrote in a report Thursday. “If weak data improves to match hard economic data and investors' assessment of economic growth, stock investors, could lead to a further increase in our IPO Issuance Barometer in the coming months.”
Goldman Sachs' IPO issuance barometer rose to 119, the highest level since February 2022, according to the research report.
Excluding SPACs and spinoffs, 10 IPOs have been completed on US exchanges with over $25 million in proceeds, 8 of which were for US-based companies, raising a total of $1,900. million dollars in gross revenue.
If this current pace of activity is maintained, it will exceed the levels of 2022 and 2023, according to Goldman
“Slower stock declines and declining bond yields since October have been the primary drivers of the rise in our IPO Issuance Barometer,” Goldman's Hammond wrote in the report. “The Fed's dovish turn in late 2023 led to an increase in market-priced Fed easing and an expansion in equity valuations. At the same time, economic growth has proven stronger than expected “despite relatively depressed sentiment levels. linked surveys such as CEO confidence and the ISM manufacturing index.”
The Goldman Sachs report comes as Bloomberg published an article on Friday about some IPOs expected in the second quarter. Lineage Logistics, SeatGeek, Ibotta and Rubrik, the latter backed by Microsoft, are looking to go public, Bloomberg reported, citing people familiar with the matter.
Last year, 154 companies went public, up from 181 in 2022, according to data collected by Stock analysis. In 2021, 1,035 companies went public. A record $339 billion was raised in the United States that year, according to data compiled by Bloomberg. Last year, that total was $26 billion, the data shows.
Social media platform Reddit (REDDIT) is likely to be one of the next big IPOs in the United States this year. Reddit is expected to make a public filing in late February, tour in early March and complete the initial public offering by the end of March, Reuters said last month. Reddit (REDDIT) is eyeing a valuation of at least $5 billion, according to a Bloomberg report late last month. The company plans to list on the New York Stock Exchange, the WSJ reported separately earlier this month.
There may be other potential large IPOs on the horizon by 2024, including bakery chain Panera, sports merchandise licensing firm Fanatics (FAN), Savers Value Village, fast fashion brand Shein, Kim Kardashian's Skims and the firm General Atlantic investment company.
