Goodwin's Rick Kline says the tech IPO market to rebound in September - Business Insider

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The devastated IPO market is coming back to life, but not all tech startups will make it through this opening

The market for initial public offerings has rebounded over the last few weeks.

The election, a potential resurgence in the pandemic, or a violent turn to the ongoing protests could all potential derail the IPO market rebound, Kline said.Like much of the rest of the US economy, the initial public offering market has reopened for business in the wake of the coronavirus crisis.

But the market started bouncing back last month, when 18 companies went public. There have already been 10 IPOs this month.Few of the offerings during the rebound thus far have been from tech companies. Instead, many have been from pharmaceutical or life sciences companies or from so-called blank-check firms, which raise money with the express purpose of using the money to buy another company.

The initial signs that markets were unfreezing happened about two months ago when some of the companies hit hardest by the coronavirus, including Carnival and Southwest Airlines,. About the same time — in April and May — there was a wave of secondary offerings, where already public companies sell new tranches of shares to public investors.

The companies that are likely to go out in the next few months are those that have done well during the pandemic or even benefitted from it, he said. Companies that were hit hard by the crisis are likely going to have to wait, perhaps into next year.

 

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