The Year of the Unicorn

The video discusses the performance of IPOs, focusing on first-day returns, medium-term gains, and long-term trends. Historically, first-day returns average 18%, benefiting mainly those who invest at the IPO allocation. Medium-term returns have been strong, especially for tech IPOs, with recent IPOs outperforming the US benchmark. However, 60% of IPOs decline after five years, indicating a more uncertain long-term outlook.

What is the average return on the first day of an IPO over the past 40 years?

• 10%

• 30%

• 18%

• 25%

Who benefits the most from first-day IPO returns?

• Day traders

• Investors buying at the open

• Investors with IPO allocations

• Long-term investors

How have recent US IPOs performed compared to the main US benchmark?

• They have shown no significant difference

• They have outperformed with a 30% return

• They have matched the benchmark

• They have underperformed

What sector is currently experiencing a bullish trend in IPOs?

• Healthcare

• Finance

• Technology

• Retail

What percentage of IPOs decline after five years?

• 40%

• 50%

• 60%

• 70%