What's an example of an IPO window?
One of the most prominent IPO windows took place in 2020-21 as stock surged during the pandemic. IPOs actually took a breather when the pandemic first started and stocks plunged since there was too much uncertainty to bring a new company public.
However, the economy stabilized as Congress passed several rescue packages, and by the fall, IPOs were picking up again. Among the big-name stocks that went public were Snowflake (SNOW +1.27%), Airbnb (ABNB +3.18%), DoorDash (DASH +0.54%), Palantir (NYSE:PLTR), and others. That pattern continued in 2021, with Rivian (RIVN -0.56%), Coinbase (COIN +14.37%), and Roblox (RBLX +0.88%) all going public.
There was even a boom in special purpose acquisition companies (SPACs), a different way of going public.
However, by 2022, many of those stocks were trading below their IPO price, a sign that there may have been too much euphoria around new tech issues.
Although the IPO window was essentially closed for nearly two years, it now seems to be reopening. Arm and Instacart went public in September, and other companies seem ready to test the waters as well.
This IPO window may not be as big as the last one, but the activity in the IPO market is a promising sign of investor confidence in the face of rising interest rates and other concerns about the economy.