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U.S. IPO market is gaining momentum this year despite the ongoing global pandemic that has already hit a great number of industries.
As the world market struggles to keep up with the coronavirus social distancing and lockdowns, IPO listings in the U.S. continue to shine all the way. However, this was not the case at the beginning of the pandemic when the IPO industry was deemed risky endeavors.
As companies seek to raise more capital to further their businesses, investors now seem comfortable with the risk. The hype in most of the initial public offerings has seen their share value dramatically rise during the day of listing.
Notably, some have more than doubled in the same day, which has made them lucrative investments. This has made traditional stocks seem very dormant despite the overall bullish call on the market in the long term.
U.S. IPO Listings to Watch Out For
According to Bill Smith, president of Renaissance Capital, more IPO deals in the U.S. can be expected by the end of this month. His investment company is eyeing on different types of companies and ready to invest in them.
“Our IPO calendar features a diverse group, including providers of pasture-raised eggs, US tax software, Brazilian education solutions, and Chinese electric vehicles,” Smith said.
One of the companies seeking to raise funds through IPO listing is Vertex, which aims on widening its scope of business and profits.
“However, the company plans to increase spending to accelerate growth, and the IPO proceeds will go to debt (and) to fund an insider dividend,” Smith highlighted.
The Vertex listing is expected to be through Nasdaq under the ticker “VERX”, and the company anticipates to raise $317 million.
Another hotly anticipated IPO is from Li Auto, a maker of electric SUVs in China, that will go public through being listed on Nasdaq as well. The EV maker expects to raise $855 million, which will bring its market capitalization to $7.9 billion. The electric vehicle industry led by Tesla Inc (NASDAQ: TSLA) has proved to be a highly lucrative area of investment.
Other deals expected this week include Vital Farms that aims to raise $125 million at a market valuation of $692 million. The company will list on Nasdaq under the ticker “VITL.”
Vasta Platform (VSTA) is expected to raise $306 million at a $1.4 billion valuation. The company will list on the same exchange under the ticker “VSTA.”
The list also includes AlloVIR (ALVR), a viral disease biotech company planning to raise $251 million at a $1.0 billion market cap, Fathom Holdings (FTHM) planning to raise just $20 million, 1847 Goedeker (GOED), planning to raise $10 million at a $58 million valuation, and SPAC Ace Convergence Acquisitions (ACEV.U), which anticipates getting $200 million at a $250 million valuation.