Private companies are rushing to go public in an IPO surge before election day on Nov. 3.
This week will see 10 new stocks debut on the NYSE and NASDAQ.
Recent IPOs are already jumping 197% . . . 201% . . . and even 249% in 24-hours!
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Most folks think that stock market volatility will increase heading into the 2020 presidential election. And there could be a brief lull of new IPOs in the first couple weeks of November.
That’s why 15 companies have already launched IPOs in 2020. And another 10 stocks expect to start trading this week.
This week’s biggest IPOs include a large number of tech and medical / biotech stocks. The IPO surge this week includes these three top deals:
- Eargo (NASDAQ: EAR) is a medical device company that makes a nearly invisible hearing aid. The company plans to raise $100 million from investors at a $600 million valuation.
- Array Technologies (NASDAQ: ARRY) makes solar panel mounting systems. The company plans to raise $675 million in a deal that values the company at $2.5 billion.
- Miniso Group (NYSE: MNSO) is a Chinese discount retailer selling lifestyle and home goods. The company plans to list on the NYSE and raise $532 million at a valuation exceeding $5 billion.
Now, most folks will WAIT for new IPOs to go public and trade on the stock exchange.
However, the best investors in Silicon Valley and Wall Street don’t wait for IPOs. Instead, they scoop up shares on the private market BEFORE a company goes public.
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Election and the IPO Surge
The market is worried that the 2020 election could be contested.
In fact, President Trump has said that he won’t commit to a peaceful transfer of power after the election. Trump is concerned that mail-in-ballots will lead to widespread voter fraud.
“We’re going to have to see what happens. You know that. I’ve been complaining very strongly about the ballots. And the ballots are a disaster,” Trump said.
Plus, there’s no certainty that Vice President Biden will accept the results.
Wall Street hates uncertainty. And the public comments raise doubts about how quickly the election will be decided.
Let’s take a look at some of the comments from Wall Street firms.
- “I don’t think the market will be ready to go up again until
the results of the election are determined and a vaccine is here,” said
Blackstone’s Byron Wein.
- “A close
election resulting in acrimony, legal challenges and legislative paralysis
would be the worst outcome for markets given the ongoing global pandemic,” JP Morgan wrote in a client note.
- “We’re seeing the markets price in potentially greater risk for the period after the election than they are for Election Day. I can’t remember a time where U.S. citizens had to worry about whether there would be a peaceful transfer of power, and whether all parties would have any doubt in accepting the electoral results,” said Interactive Brokers’ Steve Sosnick.
Ultimately, the stock market and IPOs could thrive with either Trump or Biden in the White House. Yet what the market really craves is stability.
Private companies could be hesitant to go public if there is volatility. And especially if that volatility leads to a decline in the stock market.
That’s why they’re rushing to go public right now (go here to discover HOW to buy Pre-IPOs).
The current IPO pipeline includes 164 companies.
These private companies have filed to go public. And they’re simply waiting for approval from the SEC and the stock exchanges.
There are just three weeks until Election Day. And I’d expect we’ll see at least 30 or 40 new companies debut in this time frame’s IPO surge.
Get ready for a busy IPO season!
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Yours in Wealth,
Ian Wyatt