IPO Market Rebounds After Two-Year Freeze, Raising Optimism for Broader Risk Appetite
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The IPO market is starting to thaw after a 2-year freeze, with recent successful IPOs like Reddit, Astera Labs, and Arm Holdings.
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Thriving IPO market signals a broader risk-on environment that should push up stock prices, according to LPL Financial strategists.
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171 companies went public in 2023, raising $26.2 billion, an improvement but still well below the 339 IPOs and $339 billion raised in 2021.
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Renaissance IPO ETF up 70% from its bottom and 42% over the past year, signaling positive sentiment.
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LPL strategists argue IPO rebound doesn't signal a market top yet, with IPO volume still below pre-pandemic levels.