It's turning out to be a really hot summer, and not only in the Pacific Northwest but also for the IPO market. This week alone, 17 companies are expected to go public. Many of these companies have been prepping their IPOs since last fall and believe it is a great time to pull the trigger, as the US economy recovers after the vaccination efforts.
This week is extra busy as companies try to price before quarter end (so they don't have to report another quarter's financials) and also so they can enjoy the July 4th holiday in peace. Chinese ride-hailing company, Didi, which is listing on the New York Stock Exchange, is expected to be the biggest IPO of the week (expected $4 billion raise at $60 billion valuation). Other notable names include the doughnut chain Krispy Kreme, cybersecurity company SentinelOne and Turkish e-commerce platform D-Market.
The IPO market is expected to remain hot past the July 4th weekend as well, as a slew of companies file paperwork. Yesterday, language-learning app, Duolingo got in on the action and filed to go public. Q2 2021 is expected to go down as the busiest quarter for US IPOs since 2000.
Short Squeez Takeaway: While this Hot IPO Summer may be great news for banks' profits, it for sure is not for the junior staff working on these deals. Let's pour one out for the Investment Banking analysts pulling all-nighters on multiple staffings. In some good news for these overworked souls, JPMorgan announced it's raising 1st year analyst salaries to $100k (a $15k pay bump).