Bloomberg: IPOX® Founder Josef Schuster on the US IPO Market's Rebound and What Lies Ahead

In a recent Bloomberg ECM Watch article titled "Pace of US IPOs Slumps Despite Surging Returns", IPOX® CEO Josef Schuster provided commentary on the current state and near-term outlook for the U.S. IPO market. The article discusses the puzzling trend of a slowdown in the number of IPOs, even as recent listings have delivered significant returns for investors.

The piece highlights that while the weighted average return of U.S. IPOs has impressively reached nearly 40% this year, the volume of new offerings is down compared to the previous year. This discrepancy is attributed to factors such as the abundant availability of private capital and valuation concerns from potential issuers.

Josef Schuster noted that the IPO market is currently benefiting from a positive feedback loop, where strong demand for one hot listing fuels investor interest in subsequent offerings. He pointed to the recent performance of the IPOX® 100 U.S. Index (ETF: FPX), which surged 15.2% in May, its best month since November 2020, as evidence of the current momentum.

However, Schuster cautioned that the real test for the sustainability of this recovery will come with the first quarterly earnings reports from these newly public companies. "A lot of it is not based off any fundamentals,” Schuster said. “When you see the first set of earnings from some of these companies, you will really see how substantial this recovery of the IPO market is going to be.”

Subscribers to the Bloomberg Terminal can read the whole article here: https://blinks.bloomberg.com/news/stories/SXNTVMDWRGG0