Election, inflation uncertainties are weighing on IPO market

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Greg Martin Nouvelles

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Childcare provider KinderCare Learning Companies (KLC) is one of nine companies pricing their IPOs for this week. However, Rainmaker Securities managing...

) is one of nine companies pricing their IPOs for this week. However, Rainmaker Securities managing director Greg Martin believes there could be trouble ahead for the IPO market, and joins Asking for a Trend to lay out his case.

"I think for a good subset of those, being public is kind of a luxury that when the markets are buoyant and when they see multiple expansion or get comfortable with some of the uncertainty we talked about, maybe they will go public. But why have the headache of being a public company when you get what you need as a private company?" he explains.KinderCare is one of the nine companies priced their IP O this week.

You think of spacex, you think of Bytedance, you think of open A I most recently, they have had almost unlimited access to capital.They've raised rounds of capital when they needed it.So they don't need to go public. So we see a good amount of liquidity happening in the private secondary markets where there are investors who want to access these companies and there are people to have family real time needs buying a home, private school, whatever it might be.

Maybe they don't have the same access to capital in the private markets as some of the other companies I mentioned.

 

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KinderCare Learning Companies Raises $576 Million in U.S. IPOPartners Group-backed KinderCare Learning Companies successfully completed its initial public offering (IPO) on Tuesday, raising $576 million by selling 24 million shares at $24 each.
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KinderCare makes public debut as daycare industry boomsKinderCare (KLC) made its public debut on the New York Stock Exchange on Wednesday, closing at $26.13 compared to its initial offering price of $24. This...
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