The IPO Boom Of 2021

For many companies, an IPO is possibly the most significant event in its lifetime. By any measure, going public is hard – management needs to adapt to the increased scrutiny of the stock exchange, and governance practices need to change, among other matters.

- Jennifer Lee

But companies are racing to go public like never before, buoyed by record market liquidity. An all-time high of almost US$350 billion has been raised in initial public offerings in the first six months of this year, according to data compiled by Bloomberg, surpassing the previous peak of US$282 billion from the second half of 2020 and enriching entrepreneurs and bankers alike.

When the rush for IPOs kicked off last year, stay-at-home technology dominated the scene, seizing on investor interest in anything digital, while special-purpose acquisition companies also flooded the market. This year, with stocks continuing to push skyward, the trend has broadened to include renewable-energy companies and online retailers.

Everyone from Swedish oat-milk company Oatly Group AB to bootmaker Dr. Martens Plc sold shares in 2021. Still, tech accounts for a big chunk of the deals. Didi Global Inc will rank among the biggest US IPOs of the past decade if the Chinese ride-hailing giant carries through with plans to sell as much as US$4 billion in stock.