FYI: All of a sudden, the initial public offering market is behaving rationally.
After a remarkable first half that saw newly public companies raise capital at a historic rate, there are signs everywhere that a correction has set in. While there was no 2000-style bubble in the first half, there clearly were signs of excess. Jay Ritter, a University of Florida finance professor who tracks the IPO market, notes that the average new issue this year has traded up 25% on its listing day, the highest first-day average return since 2000. But the trend has started to shift: The Renaissance IPO exchange-traded fund (ticker: IPO), which invests only in new issues, is down 15% since late July, after rallying sharply in the year’s first half.
Regards,
Ted
https://www.barrons.com/articles/ipo-market-wework-uber-peloton-51569631194
