The volume of initial public offerings in the United States has already exceeded the volume of the previous record year 2020 this year. It has already raised $171 billion (141 billion euros) in its initial public offering (IPOs), after $168 billion in the whole of last year, according to data from provider Dealogic.
During 2021, the initial public offering of Chinese chauffeur service provider Didi Chuxing Technology, retail app Robinhood Markets, and US electric vehicle manufacturer Rivian Automative are also expected to go public.
According to experts, this trend should continue next year. “Trees don’t go up forever, so there won’t be record sizes every year,” said Eddie Molloy, equity strategist at Morgan Stanley. However, there is still much to be done in 2022.
An important driver of this trend is IPOs through Special Purpose Acquisition Companies (SPAC). In May, data provider Refinitiv reported a record $100 billion raised from investors in this way. SPAC is mostly launched and listed on the stock exchange by well-known managers or investors. Your goal is to acquire an operating company and thus help it to be listed on the stock exchange. Since subscribers to SPAC shares initially do not know who the acquisition target will be, SPAC is also referred to as “blank check companies”.