IPO activity next year could dampen if markets do not rebound: report
By Aparajita Saxena (Reuters) - The excitement of proposed initial public offerings by ride-hailing rivals Uber and Lyft next year may not be enough to encourage other firms to follow suit, as they fear that slowing global growth and rocky stock markets dragging into next year could threaten market debut valuations. As few as 125 firms could file for initial public offerings in 2019, compared to 190 so far in 2018, manager of IPO-focused exchange-traded funds Renaissance Capital said, adding that the figure could rise to 200 if U.S. stocks resume their climb.
By Aparajita Saxena
(Reuters) - The excitement of proposed initial public offerings by ride-hailing rivals Uber and Lyft next year may not be enough to encourage other firms to follow suit, as they fear that slowing global growth and rocky stock markets dragging into next year could threaten market debut valuations.
As few as 125 firms could file for initial public offerings in 2019, compared to 190 so far in 2018, manager of IPO-focused exchange-traded funds Renaissance Capital said, adding that the figure could rise to 200 if U.S. stocks resume their climb.
Overall, total proceeds from IPOs in 2019 could be as much as $60 billion, up from $47 billion in 2018, according to the annual report from Renaissance Capital. (http://bit.ly/2QJglfW)
"Issuance and returns were very strong until the fourth quarter (of 2018), when a global selloff caused the average IPO return to sink to a measly 5 percent," Matthew Kennedy, senior IPO market strategist at Renaissance Capital, said.
"As a result, we enter 2019 on uncertain footing."
App-based cab hailing giant Uber Technologies Inc earlier this month confidentially filed for a listing with the U.S. Securities and Exchange Commission, in lock-step with its smaller rival Lyft Inc, which also filed for an IPO.
But markets have been roiled by an on-going trade spat between the United States and China, which could dampen investor enthusiasm for other 2019 IPO hopefuls like apartment-rental service Airbnb Inc, analytics firm Palantir Technologies and Stripe Inc, a digital payment company.
Kennedy said that if Uber and Lyft delayed their IPOs, it would discourage other companies, and the year would probably see even fewer than 125 companies listing on the U.S. exchanges.
Technology and biotechnology will continue to dominate listings in 2019, but investors should watch out for fintech and consumer staple startups like zero-fee stock trading platform Robinhood, and plant-based meat maker Beyond Meat, that have received high investor interest, and raised millions of dollars in funding rounds.
High-profile IPOs next year could also include photo sharing platform Pinterest, 165-year old jeans-maker Levis Strauss and workplace messaging app Slack.
Chinese companies are expected to look at U.S. markets for a listing after raising nearly $9 billion on the U.S. exchanges in 2018, the highest level since 2010, and accounting for 17 percent of total U.S. IPOs, Renaissance Capital's report said.
Online brokerages Futu Securities - China's largest, and Tiger Brokers are possible Chinese companies looking to sell shares to U.S. investors.
(Reporting By Aparajita Saxena in Bengaluru; Editing by Sweta Singh)
This story has not been edited by Firstpost staff and is generated by auto-feed.
Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.
By Jessica Resnick-Ault NEW YORK (Reuters) - Oil prices strengthened on Wednesday, as OPEC and its allies were seen complying with a pact to cut oil supply in September, even as concerns loomed that recovery in fuel demand will be stalled by soaring global coronavirus cases. Early in the day crude was boosted by a bullish stock market. Even as equities whipsawed on pandemic worries, oil stayed higher, buoyed by expectations that OPEC could staunch a supply glut
By Tina Bellon and C Nivedita (Reuters) - Tesla Inc will further cut the price of its Model S "Long Range" sedan in the United States to $69,420, the electric carmaker's chief executive, Elon Musk, announced in a tweet https://bit.ly/2H0JCP0 on Wednesday. The anticipated drop marks the second time this week Tesla has cut the price for the high-end sedan, following a 4% cut of the Model S's price in the United States on Tuesday to $71,990.
By Jeff Mason DES MOINES, Iowa (Reuters) - Under siege over his handling of the novel coronavirus pandemic, President Donald Trump on Wednesday cited what he said was his son's mild bout of the virus as a reason why American schools should reopen as soon as possible. Trump made the comment about his son, Barron, as the president swept into Iowa on a mission to shore up support in battleground states that he won in 2016 but is in danger of losing to Democrat Joe Biden barely three weeks before the election. First lady Melania Trump announced in a statement earlier in the day that the virus that struck both her and her husband had also infected their 14-year-old son