US IPOs set to extend recovery

The US IPO market has bounced back strongly in 2024 after a nearly two-year dry spell, driven by receding recession fears and a searing rally in stocks, reports Reuters.
Still, investor preference for companies with a clear path to profitability has kept enthusiasm in check, with analysts expecting a recovery to take roots next year.
"Right now, (the IPO market recovery) is very sober and clinical," said Mike Bellin, IPO Services Leader at PwC US, citing the election uncertainty and doubts about the Federal Reserve's ability to guide the economy to a soft landing.
"As we get more momentum and alleviate some uncertainty, we may move into a market where investors are willing to put more money in riskier IPO candidates."
Companies that raised at least $100 million in their IPOs this year have traded up about 25% on average, according to data from Renaissance Capital, with first-day gains of 16%.