IPO Market Had its Best Week in 15 Months

The market for initial public offerings (IPOs) may be picking up.

Reuters reported Friday (Feb. 17) that the week of Feb. 6 to Feb. 10 saw the completion of five IPOs that raised a total of $1.17 billion — a figure that was up from the previous week’s total of just $193 million.

That made for the busiest week in 15 months, according to the report, which cited data from Dealogic.

If this recovery continues, companies that have been holding back on their IPOs could choose to launch them in the second half. These could include Reddit and Arm Holdings, the report said.

According to the report, other companies may be waiting to see a more sustained change of direction in the market.

The report also pointed to market volatility declining, corporate valuations rising and investor anxiety easing as signs that the IPO market may be heading for a turnaround.

A reversal of the market would arrive after a long period of drought.

Bloomberg reported in December that IPO deals had fallen to levels not seen since the 2008 financial crisis and that the amount raised from listings in 2022 was down 68% from the previous year.

Still, there has been activity in the new year. On Feb. 6, it was reported that three restaurant groups are considering IPOs.

Cava Group said Feb. 6 that it had submitted a draft registration statement relating to a proposed IPO to the Securities and Exchange Commission (SEC), while the Wall Street Journal (WSJ) reported the same day that two other restaurant groups — Fogo Hospitality and Panera Brands — are aiming to offer IPOs in the next few months.

The WSJ added that all three companies are watching to see if the markets improve.

In late January, it was reported that Stripe is considering either going public or allowing employees to sell their shares within the next 12 months.

The WSJ reported that Stripe doesn’t need to raise capital but does have employees and other investors who would like to be able to sell their shares.

The most recent edition of PYMNTS’ FinTech IPO Index showed only a slight gain for the week but stronger results for the first several weeks of 2023.

The overall index was up 1.2% through the most recent five sessions, 6% for February and 26% year to date.