IPOs, SPACs Surge in 2020 as Companies Rush to Go Public

The IPO market has been exceptionally active, with record issuance levels and strong investor returns. In the US alone, issuance has surpassed $150 billion, with global figures nearly four times higher. Major IPOs like DoorDash and Airbnb have performed well, encouraging more companies to go public. SPACs are also raising significant funds, though there are concerns about their ability to secure quality deals. IPOs have outperformed major indices like the S&P 500, driven by tech companies and investor demand for growth. However, risks remain that could affect valuations.

What has been the approximate amount of IPO issuance in the US this year?

• $50 billion

• $150 billion

• $300 billion

• $500 billion

Which companies are mentioned as having raised over $3 billion each in their IPOs?

• DoorDash and Airbnb

• Facebook and Google

• Uber and Lyft

• Amazon and Microsoft

What is a major concern regarding SPACs in the current market?

• They are not raising enough money

• They might not find suitable deals

• They are outperforming traditional IPOs

• They are only focused on tech companies

How has the Renaissance IPO ETF performed compared to the S&P 500?

• It has underperformed

• It has not been affected

• It has performed similarly

• It has significantly outperformed

Which sector is largely contributing to the success of IPOs?

• Retail

• Technology

• Finance

• Healthcare