{"id":123081,"date":"2021-11-17T19:47:34","date_gmt":"2021-11-17T19:47:34","guid":{"rendered":"https:\/\/fin2me.com\/?p=123081"},"modified":"2021-11-17T19:47:34","modified_gmt":"2021-11-17T19:47:34","slug":"ipo-boom-rivian-pushes-value-of-companies-that-went-public-this-year-to-a-record-1-trillion","status":"publish","type":"post","link":"https:\/\/fin2me.com\/business\/ipo-boom-rivian-pushes-value-of-companies-that-went-public-this-year-to-a-record-1-trillion\/","title":{"rendered":"IPO boom: Rivian pushes value of companies that went public this year to a record $1 trillion"},"content":{"rendered":"
(Click\u00a0<\/em>here<\/em>\u00a0to subscribe to the new Delivering Alpha newsletter.)<\/em><\/p>\n Rivian's blockbuster initial public offering last week pushed the total exit value for U.S. public-market listings this year beyond an unprecedented $1 trillion marker, a record that more than doubles 2020 levels, according to data compiled by PitchBook.<\/p>\n The PitchBook data includes traditional IPOs as well as direct listings and special purpose acquisition vehicles, noting that 17% of this year's collated valuation figure came from SPACs.\u00a0<\/p>\n The $1 trillion figure helps quantify just how hospitable the public markets have been to new entrants and builds a greater opportunity set of equities for investors to trade. However, it's also a data point that may help bolster the case for those who are concerned that some of the recent IPOs epitomize a dislocation between valuation and fundamentals.<\/p>\n Late-stage growth \u2014 both among private companies and newly public ones \u2014 represents a pocket of froth, according to Dipanjan "DJ" Deb, the CEO of Francisco Partners, a tech-oriented buyout firm.\u00a0<\/p>\n "Many of the unicorns today are actually disrupting the world and deserve their valuations," Deb said in an interview for CNBC's Delivering Alpha Newsletter. "But probably 70-80% of them will have some sort of day of reckoning. They're not all going to disrupt the world, and people are conflating growth and quality in late stages of a bull market."\u00a0<\/p>\n Rivian's upsized initial public offering last week added about $67 billion to the total, and since then, it has more than doubled, trading around $150 billion. (Though the volatile shares were off by 14% in morning trading Wednesday.)<\/p>\n Still, the electric-vehicle maker notched the second-highest valuation for a listing this year, after Coinbase debuted with an $85 billion valuation in April. The crypto exchange has added roughly $5 billion in market cap since that time.\u00a0<\/p>\n In addition to combined valuation, U.S. equity issuance has also notched a record. So far this year, $490 billion has been raised across IPOs, follow-ons, convertible bonds and SPACs, a 9% jump from 2020 levels, according to Goldman Sachs.\u00a0<\/p>\n "With equity valuations at elevated levels, we expect the environment will remain favorable for equity issuance in 2022," the firm said in a recent note.<\/p>\n