IPO Fever - a record breaking year for initial public offerings, with Kathleen Smith (Renaissance Capital) and Jay Heller (Nasdaq)

The Compound and Friends

Josh Brown

Investing, Business News, News, Business

4.7 • 2.2K Ratings

🗓️ 2 October 2020

⏱️ 78 minutes

🔗️ Recording | iTunes | RSS

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Summary

We're on pace to break the all-time record for IPOs set back in the year 2000. We could potentially see over $100 billion raised in initial public offerings and more than 200 newly listed companies by the end of 2020. If so, it would be one of the strangest, most unpredictable outcomes of the year - and that's really saying something this year! Today's new episode of my podcast, The Compound Show, takes a look at the IPO Fever we're experiencing now. I have two of the most knowledgeable people in the country as my special guests. First, we talk to Kathleen Smith, the founding director of Renaissance Capital, the premiere research firm in IPOs and the sponsor of the IPO ETF. Then, we speak with Jay Heller, the head of US capital markets at Nasdaq, who has overseen the launch of approximately one hundred new issues so far this year - most of which he conducted from his kitchen table in suburban New Jersey! Kathleen and Jay have so much knowledge to share about initial public offerings and the watershed year that 2020 has become. You're really in for a treat this week :) Thanks for listening and please leave a rating and review! Hosted on Acast. See acast.com/privacy for more information. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	I am so excited about today's show. It's your boy, J-B, listen, the biggest story for investors
0:10.3	this year, other than the pandemic, of course, the number one trend in the
0:15.8	markets this year is initial public offerings.
0:19.6	And when we look back on this period of time, three years from now, five years, ten years from now, we say,
0:25.9	what was going on with investors in 2020? This is it. This is the mega trend of this period of time.
0:34.1	It is unbelievable what's happening with IPOs,
0:36.5	to paraphrase a Donald Trumpism.
0:39.0	But really, the hyperbole is warranted.
0:42.3	We are on pace to break a hundred billion dollars worth of money raised by initial public offerings this year.
0:48.5	It's really extraordinary to consider what went on in the first half of this year and what's happening now.
0:54.8	The fact that this many companies can go public and raise this much money,
0:59.4	I really think makes this a watershed year for capital formation and a hundred billion dollars we did
1:06.0	in in the year 2000 and we got close in 2014 but this is we look like we're on pace to break both of those records by the end of 2020.
1:18.0	And it's not just an sheer dollar amount that's notable, it's the number of companies, the volume of deals coming to market is immense.
1:27.1	The pipeline is robust and we're seeing companies in every segment of the economy.
1:32.1	There was an avocado company went public today, of all things.
1:36.0	I don't think the avocados are connected to the cloud, okay? It's like literally, it's a guacamole IPO, all right? So it's, and it's health care and it's a guacamole IPO, all right? So it's and it's health care and it's biotech and it's obviously
1:47.6	software and computing its electric vehicles so gambling there's a whole spectrum of businesses in all segments of the
1:57.3	economy represented by these deals.
2:00.4	I think we're probably going to finish the year with something like 200 IPOs and it seems to be
2:13.0	The NASDAQ's doing more deals than New York Stock Exchange, but the New York Stock Exchange listed deals are a little bit bigger and And what's interesting is we've got a whole cornucopia of types of initial public offerings.
2:18.7	Obviously we've got the traditional ones like Snowflake being a very notable example but then we've got direct
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