Between the eight IPOs priced last week and at least another dozen scheduled for this week, the activity in new issues is starting to heat up. Taking a bigger picture view, however, the flow of IPOs hasn’t been off the charts by any means. The chart below is from a B.I.G. Tips report we sent out to clients on Monday analyzing the market’s performance following short-term spikes in IPO activity as well as how IPOs have performed so far this year after they come out of the gate. In the report, we also highlighted a number of relatively recent IPOs that currently look attractive. If you are not yet a client and would like to see the entire report, please sign up for a free trial to Bespoke Premium or Institutional to receive instant access. You can also take advantage of one of our current subscription specials by clicking on the ad below.
Getting back to the chart, even after the recent surge in new listings, IPO activity is still down so far this year compared to last year. Additionally, the spike we have seen in the last two weeks is not even as strong as levels we saw last year. Looking back even further, the decline in IPO activity is just part of a longer-term trend. The current surge in IPO activity is still below last year’s peak, which was below the peak levels we saw in the prior bull market, which themselves were below the peak we saw during the dotcom boom. As far as a bubble in IPO activity is concerned, we are still far from it.