Maybe it was all the extra time at home to spend trading, or maybe it was ample liquidity looking for its next home; whatever the reason, 2020 has seen surging IPOs, with a number of stocks – including Snowflake and Airbnb – producing impressive runs since their listing; though some have come back down to earth. Across the board, tech and healthcare have been the two areas where IPOs have flourished. All in all, companies raised more than $165 billion through 454 offerings on US exchanges in 2020.
According to an analysis by Reuters, shares of companies that went public via IPOs or direct listings this year, on average, have surged 75%, even though most companies that listed are not profitable. Institutional investors, who typically have access to shares at the listing price, have reaped much of the gains.