Will 2024 be the year of new IPOs?
Last year's IPO market recorded disappointing results, despite market growth in the second half of the year.
This was evident not only in terms of volume, but also in terms of the returns of new companies launched on the market.
However, optimism for 2024 could stimulate an increase in the number of IPOs, if not even an appreciation of the shares of the stock market launches that took place in 2023.
Among the most discussed topics of the year 2024, there is the Reddit IPO and Stripe IPO speculation.
IPOs between 2022 and 2023 In 2022, there was a marked decline in the number of IPOs, due to the difficulties encountered by the US stock market, which strongly discouraged many companies from going public.
2023 followed this trend, closing with around 141 IPOs, despite a recovery in stock markets in the second half of the year.
Not surprisingly, the average returns of IPOs launched between 2022 and 2023 were negative, confirming the historical positive correlation between the number of IPOs and increased market enthusiasm, which did not fully materialize in 2023.
As a result, the market is watching the prospects for IPOs in 2024 with interest, as is the case with the post-pandemic recovery of 2021, the year in which the new listing market experienced an explosion, as well as the performance of IPOs in previous years.
It must be recognized that IPOs in the information technology sector have been an exception, thanks to the contribution of artificial intelligence, and have offered their investors positive returns, as in the case of Arm Holding (ARM), probably the most debated stock in the last year.
It is impossible not to refer to the failure of Birkenstock, whose IPO was memorable for its $1.5 billion launch.
While ARM recorded a gain of almost 50%, BIRK suffered a loss of 6% in a market context described as a "general rally".
What to expect from the IPO market in 2024: the Reddit and Stripe case.
Will 2024 be full of IPOs? But not all experts are positive about the IPO market for 2024.
This stems from the fact that, despite expectations of an increase in the number of new listings, periods of high volatility generally tend to discourage investors from allocating capital in IPO, due to their often high volatility.
However, the situation looks different for companies with a more established background, such as Reddit and Stripe.
Although nothing is yet certain, there is a lot of speculation among various analysts regarding the possibility of launching an IPO for these two historic web companies.