There’s only one thing that has pumped up this market
IPOs had Worst Year since 2003. And the Dow at 20,000?
by Wolf Richter • Dec 20, 2016
There’s only one thing that has pumped up this market.
Stock indices are frolicking in record territory. The S&P 500 is up almost 11% this year, though the gains came after the election. The Dow has been titillating the entire world, day after day, with the prospect of finally, finally hitting 20,000 after being just a hair shy of it for two weeks. So it would seem that the IPO market would be hot. But for IPOs, 2016 has turned out to be a fabulously terrible year.
That makes two years in a row. Last year at this time, I wrote that the IPO market in 2015 had been the worst since the Financial Crisis. I quoted Sam Kendall, UBS global head of equity capital markets:
“We all thought that we might finally get a year where we would be able to put four quarters together,” he said at the time. “If you looked at the pipeline and how people were thinking about the world, it just felt good. And then the wheels came off.”
Last year, the number of US-listed IPOs had plunged 38% to 170, according to Renaissance Capital. In terms of dollars, only $28.7 billion was raised, down 48% from 2014. By that measure, according to Thomson Reuters, it was the “worst year since 2009.”
But that’s like so 2015. …………………(more)jwirr, eridani, DJ13 and 2 othersAbelenkpe, Koko like this
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