IPO Frenzy Expected to Reach New Highs This Fall

September 2, 2021

The pace of initial public offerings (IPOs) has already reached highs not seen since the 2000 dotcom bubble, and a new report suggests that it will not slow any time soon.

According to a new report from Renaissance Capital, somewhere between 90 and 110 IPOs are expected in the next four months, which would bring 2021’s total to about 375 deals raising a total of $125 billion in capital. If their forecast is accurate, this would be the biggest year on record in terms of capital raised and the biggest year in terms of count since 2000.

Special purpose acquisition companies (SPACS), are also expected to continue their already record-breaking run. SPACs have already shattered previous records, with 415 of these blank check companies hitting the market in 2021, raising $109 billion. Renaissance estimates another 310 before year’s end, raising $70 billion more. Analysts from Renaissance do note that SPACs are likely to have a harder time raising capital in the coming months because they have seen a broad decline in returns and increasing regulatory scrutiny.

Many analysts argue that the glut of IPOs and SPACs hitting the market is a sign of overly speculative exuberance on the part of investors and that they may be setting the stage for a large correction in the stock market.

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