Skip to main content

Indian hotel chain Oyo Hotels, backed by SoftBank, filed a public offer on Friday, just two days after the glasses-unicorn Warby Parker (WRBY) went public on the New York Stock Exchange.

The surge of activity became commonplace during a record wave of IPOs this year that saw heated offers from Robinhood (HOOD), Coinbase (COIN) and 23andMe (ME).

In a new interview, Suzanne Shank – president and CEO of investment bank Siebert Williams Shank – said that the IPO boom comes down to two main factors: companies repositioning themselves during the pandemic and persistent interest rates. low interest of the Federal Reserve.

“I think we’re seeing companies that have both benefited from the pandemic, as well as those that are sort of restarting after the pandemic,” she says. “It really kicked off this increased chord flow.”

In the third quarter, which ended Thursday, 94 companies went public in the United States and raised a total of $ 27 billion. This is the busiest July-September period since 2000, according to a report by Renaissance Capital.

Across the world, more than 2,000 IPOs have raised a total of $ 421 billion so far this year, a record high, Reuters reported.

In addition, other public offerings are underway in the fourth quarter, including high-profile IPOs of delivery company Instacart and electric van maker Rivian, Yahoo Finance’s Jared Blikre reported Thursday.

The Federal Reserve’s prolonged near-zero interest rate policy has propelled corporate valuations and offered the assurance of a favorable capital environment, Shank said.

“Earlier in the year, inflation concerns had made investors fear that the Federal Reserve would change its policy, but after the Fed said inflation would not change in the long run,” adds she does. “It’s been a really strong IPO period.”

“Low interest rates have driven up the valuations of growing companies, and hundreds of aspiring unicorns are looking to profit,” she said.

Uncertainty remains as to how long the Fed’s low interest rates will persist. At a meeting last month, the Fed signaled the potential of six or seven rate hikes through 2024, as it plans to cut back its asset purchase program by the end of the year. year.

NEW YORK, NEW YORK – JULY 29: Baiju Bhatt and Vlad Tenev attend Robinhood Markets listing day on July 29, 2021 in New York City. (Photo by Cindy Ord / Getty Images for Robinhood)

Shank started his career as a civil engineer, before realizing that it could have more of an impact on the financing of projects than on their design.

After earning an MBA from the Wharton School at the University of Pennsylvania, she co-founded investment bank Siebert Cisneros Shank, later to become Siebert Williams Shank.

Speaking to Yahoo Finance, she noted that IPOs have been concentrated in the healthcare and biotech sectors, but praised the economy’s strong performance.

Read more:

Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, Youtube, and reddit.

Leave a Reply