U.S. IPO market to reopen with a bang as biggest deal of the year is set to price

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The U.S. IPO marker is set to reopen with a bang as biggest deal of 2020 prices

After a few months of slim pickings, the U.S. initial public offering market is expected to reopen with a bang this week with the biggest deal of the year expected to price later Tuesday.

After going public in 2005, Warner Music was taken private by Access Industries Inc. in 2011 for $3.3 billion. Rival Universal Music Group was valued at roughly $34 billion last year in investments from around the globe. Access will still have control of the company, once the deal is complete. Proceeds from IPOs are down 64% in the year to date, compared with the same period a year ago. The number of deals that have been completed is down 42% from a year ago, excluding SPACs, she said.

“The performance of the IPO ETF IPO, +0.74% is what fans the flames and drives issuance,” she said. “And the deals that have priced are trading well, which gives investors the confidence to look at new issues.”

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