FX.co ★ US IPO market clicking into gear

The US IPO market is gaining momentum after its hibernation. Analysts at Bloomberg made this conclusion, though they hesitate to predict how many companies will venture to be listed as a publicly traded company in Q2 2024.

The two momentous events took place in March this year when Astera Labs Inc., a provider of semiconductor-based connectivity solutions for cloud and AI infrastructure, and forum social network Reddit Inc. launched IPOs on a stock exchange. Their successful debut on Wall Street did not happen by chance.

Other high-tech companies decided to follow suit. The highly-anticipated events in the next quarter will be IPOs of Rubrik Inc., a cloud data management and data security company, and its rival UL Solutions Inc.

Investors are inspired by the amazing performance of Astera Labs and Reddit. Indeed, Astera shares zoomed up by a stunning 90% since its first trading day on Wall Street. Reddit shares have rallied by 40% since then. No wonder, investors are waiting for the next IPOs of high-tech companies with bated breath.

Meanwhile, analysts and investors are discussing potential gains and risks. Only time will tell whether the US IPO market will again capture investors’ attention for long or take a back seat.