FAST FIVE: The Top 30 IPOs Of 2019 Will Burn A Total Of $12.5 Billion Between Them
Here are the key findings: VOLUME: “Mania” rather than “boom” is a better description of the IPO market in the late 1990s.An average of 400 IPOs were completed every year for 6 years.
Analysts expect 43% of 2019 IPOs will be profitable at some point during the first three years as a public company, in other words, roughly half of this year's IPOs will soon be bankrupt, especially once the US economy enters a recession as is widely expected some time in 2020/2021.
A portion of the below-average share of profitable firms can be attributed to the wave of Biotech offerings.
SECTOR: Since the late 1990s, the sector with the largest share of the IPO calendar has shifted from Tech, Media, and Telecom (TMT) to Health Care.
In other words, the valuation bubble among “fast growing” companies has never been greater.