2017 is shaping up to be a blockbuster year for Initial Public Offerings.
Another 40 – 60 private companies could go public before the end of the year, according to the IPO experts at Renaissance Capital. You can wait for these IPOs to start trading…
As of August 31, there were 64 potential IPO filings with the Securities and Exchange Commission. This represents a robust pipeline of potential deals.
Our research indicates that IPO activity will pick up, now that Labor Day has passed. Wall Street bankers, traders and investors are now back from their vacation homes in the Hamptons and Martha’s Vineyard, making now an ideal time for private companies to go public.
A total of 150 companies could go public in 2017, raising more than $35 billion in capital. That means we could see total IPOs up 25% from 2016. Meanwhile, the amount of capital raised is expected to end up 60% higher than last year.
Last Friday, an exciting private company called Roku just filed to go public. The company was originally started within Netflix (NASDAQ: NFLX), which invested $5.7 million. Due to conflicts of interest, Netflix spun off Roku.
The company – along with Netflix – is at the heart of the cable “cord cutting” movement. And it’s rumored to be going public in an IPO that could reach a $1 billion valuation.
There are several other high profile IPOs in the pipeline.
One of the biggest is a Chinese company called Best. The company provides express delivery services in China’s $1.6 trillion logistics market. Best generated revenues of $1.2 billion in the first half of this year, though the company is still unprofitable.
Best was founded by Johnny Chou, a former president for Google in China. And Alibaba (NASDAQ: BABA) is one of the firm’s major investors, with a 23% equity stake.
Best has initially planned to raised $750 million in the IPO. As of last week, the offering size was increased to $930 million. That would give Best a valuation of $5.7 billion.
The company hasn’t yet confirmed an IPO date. This week, there were no stock offerings. Yet we’re expecting IPOs to start ramping up by the end of September
When it comes to IPOs, you really have three choices.
First, you can try to get allocated shares of the public offering. In order to do this, you must have an account at one of the underwriters and must be a preferred client (meaning you must be rich).
Second, you can wait for these stocks to start trading on the NASDAQ or NYSE. The problem is that once these stocks begin trading, many have already experienced a first day jump in their share price. As a result, quick and easy gains are already gone.
Third, you can invest in private companies before they go public. In fact, right now you can legally buy shares of Roku using a pre-IPO investment.
My upcoming live training reveals everything about this booming growth market. Plus, you’ll discover exactly how to get started right now.