Its raining IPOs!
IPOs are lovely. With IPO everyone makes money. Particularly the investment bankers, founders, VC, even lucky retail investors with their hefty listing gains (Except the RPower ones)
Being a curious trend finder, I have observed that generally after multiple IPO booms the market bursts & crashes in immediate short term…
Let’s peep into history:
The 90s Dot Com Bubble had plethora of IPOs, the later rash crash we all know.
The year 2007 had 108 IPOs (highest in last 14 years) & then came 2008 crash.
In all those 14 years, 2017 was the year where maximum IPO funds were raised & then the carnage of Small & Mid caps followed in 2018.
Don’t take it wrong. IPOs are wonderful.
Though, as the saying goes, “Too much of anything is harmful”, we must be cautious with too many IPOs too.
In last 2 months we already have had 12 IPOs & 6 more lined up this week! If the trend continues the same, we must turn cautious for immediate short term. If you’re long term investor, enjoy the listing gains!
Will the current raining IPOs be different than the past ones?
Only the time will tell…