US IPO Market on an Upswing in Q1

There are many tech unicorns, which are due to go public, but the problem is that they are carrying some insane valuations as of now in the private sector. Thus, they will have to wait for some time before they can enter the market with their IPOs.

While these companies will still take some time to come to the market, there have been some 22 new listings that happened in the US markets in the first quarter of 2017.

A study released by a research firm Ipreo that is focused on private companies states, “The IPO market continued to plod along [in] Q1 noting a decline from 25 IPOs in the fourth quarter. Still, Q1’s figures mark a substantial increase over the comparable period last year, which saw just six issuers make public debuts for $582.0M.”

These 22 listings so far have raised a total of $10.9 billion. In this week alone, which is seen as the most active week, six IPOs were there, which together raised $1.2 billion.

Yext, the company known for helping businesses power their location data, was the latest on the New York Stock Exchange. On the first day of trading, it closed at $13.29, a rise of 21% above the issue price. Yext having McDonald’s, Best Buy, and Marriott etc. in its client list helps businesses sync their customer-facing information through its cloud-based platform across the internet.

The investors were keen on this company as it has posted a 30%+ revenue growth and is expected to continue its strong performance in the coming years.

Another IPO to get listed this week was Netshoes, which was priced at the bottom of its range, unlike Yext. This failed to lure the investors and slid 10% on the first day of listing. The slide continued and finally, it closed 19% down on Friday. The investors probably didn’t like the failure of the Brazilian online retailer that deals with shoes and sports apparel to grow the profitability.

Another Brazilian company Azul, which is actually the third-largest airline of Brazil, also floated its IPO and raised $573 million by listing both in the home country and the US. Since the listing of Virgin America three years back in 2014, this is the first airline to list in the US.

Other IPOs to list this week were Warrior Met Coal, which is both producer and exporter of metallurgical coal and Texas commercial bank, Cadence Bancorporation to name a few.