IPO market continues to open up, market downdraft be damned, but higher rates loom

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Stock Markets,Investment Strategy,Southwest Gas Corp

Suddenly, there is real money appearing in the IPO world. Next week, over $1.25 billion is scheduled to come to market, led by Rubrik.

For proof that the market for initial public offerings continues to open up despite the downdraft in the market, just look at this week. Two large IPOs successfully priced last night. Centuri Holdings , a spinoff from Southwest Gas Holdings that provides energy and utilities infrastructure services, priced 12.4 million shares at $21, the top end of the $18-$21 range. Centuri raised $260 million. Ibotta , a digital advertising platform, priced 6.

Before Covid, a typical year would see $40-$60 billion raised. Since Covid, the numbers have been all over, but the last two years have been disastrous. IPOs: total raised 2023 $19.4 b 2022 $7.7 b 2021 $142 b 2020 $78 b 2019 $46 b 2018 $47 b Source: Renaissance Capital One development especially encouraging to investors: a modest upturn in valuations for late-stage tech companies.

 

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