That’s the consensus across Wall Street after a flurry of deals on US exchanges positioned September to be the biggest month for IPO fundraising since the market essentially shut in January 2022, according to data compiled by Bloomberg. Even though Arm Holdings Plc and Instacart stumbled in the days following their debuts, their recent stability is giving confidence to firms in the country — and around the world — that have been waiting for their chance.
It’s a stark contrast to earlier this year with volatility staying low as investors get more comfortable that the Federal Reserve’s interest rate hiking campaign is nearing its end. The VIX Index has broadly held below 20 since late March — a key level for bankers seeking a less volatile equity market for pricing stock offerings — while the benchmark S&P 500 Index is up 11% this year.
“Many companies are starting to kind of get to that pivotal point where they need to raise capital, in the public or private market,” Collmer said. Activity across the region is showing signs of life, however. There has been a slew of announcements, including Germany’s Schott AG looking to raise as much as €813 million from an IPO of its specialty medical-glassware division, Schott Pharma AG. CVC Capital Partners is gearing up for a potential listing as soon as November which could be among the buyout industry’s biggest ever in Europe, Bloomberg News reported.
“I wouldn’t say there is a pipeline per say of IPOs waiting to happen but a lot of companies are now ready to hit the button and go ahead should the environment be favorable,” Feuerstein added.