Dropbox (NASDAQ: DBX) and Spotify (NYSE: SPOT) have been the biggest IPOs of the year.
Dropbox went public at $21 – valuing the cloud storage company at $8.2 billion.
Meanwhile, Spotify started trading at $165. That valued the “Netflix of music” at $29.5 billion.
These were two of the best known “unicorns” to go public in 2018. They’ve successfully raised money from investors and experienced positive reception on Wall Street.
These successes have encouraged other companies to go public. And you can see proof in the numbers for the first three months of the year.
The first quarter of 2018 was the best period for new IPOs in three years. A total of 44 companies went public – raising $15.6 billion from investors.
Biotechs and technology stocks have been leading the way.
Another 24 companies have gone public with new IPOs in the second quarter. At this pace, the current quarter will be stronger than the first quarter of the year.
What’s driving the trend?
First, the stock market has been performing well. That means the market is receptive to new companies going public at healthy valuations.
Second, low interest rates mean there is lots of capital available for investment. That’s driven huge investment in privately held companies. And means there’s ample capital to fund big new IPOs.
Third, there’s increased pressure from the employees and shareholders of privately held companies. They increasingly want a liquidity event so they can turn their stock into cash.
That’s creating a situation where companies are rushing to go public right now.
One company – I call it “the next Amazon” – just accepted a huge private investment.
My research shows that this big funding could be happening in anticipation of an upcoming IPO.
Right now, I’d like to explain how you can earn big profits from this upcoming IPO.
The average IPO saw shares gain 9% after going public. The big profits are made by investing in pre-IPO shares. These shares are typically “off limits.”
Yet using a secret backdoor, you can claim your early shares in new IPOs right here.