Arm IPO Is Helping to Revive the Market for Pre-Offer Investing

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Arm Holdings Ltd.’s multi-billion dollar initial public offering, which is set to launch in a week, is helping to revive interest in one small, battered corner of the financial market: stakes in companies that are set to go public soon.

Buying interest, or bids for so-called late-stage private stakes, has risen to about $1.4 billion from $1 billion at the depth of the stock market correction last year, according to Rainmaker Securities, which facilitates such transactions.

But while rising, interest remains subdued. Private companies traded at a discount to their last fundraising round of about 58% in July, and while that is down from 61% in May, it is up from 52% in June, according to private market trading platform Forge. His firm, which traditionally invested in public stocks, recently launched a fund dedicated to pre-IPO investments in tech and consumer companies.

 

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Belgique Dernières Nouvelles, Belgique Actualités