New IPOs Racing Back to Market With $7.8 Billion of Stock Sales

(Bloomberg) — Newly public companies and their top shareholders are racing back to the U.S. equity market at the fastest pace this year.

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Companies that staged initial public offerings in 2021 and their shareholders have sold another $7.8 billion of stock across 28 deals, with $4.4 billion coming since Labor Day, according to data compiled by Bloomberg.

This week, new stock sales are being launched in Duckhorn Portfolio Inc., Paycor HCM Inc., Sun Country Airlines Holdings. Holders of Robinhood Markets Inc. may join them, with a regulatory blessing from the U.S. Securities and Exchange Commission expected as soon as Wednesday.

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“The equity issuance market is always a case of strike while the iron is hot,” Stifel chief equity strategist Barry Bannister said in an interview. “Overvalued markets are certainly hot, but with gathering clouds of weaker global growth and tightening liquidity.”

Secondary offerings in 2021 listings have failed to deliver the same returns as their market debuts. This year’s IPOs climbed by an average of 23% in their first session and held those levels after a month of trading. But secondary offerings from this group returned an average gain of 4.9% after one session and an average a loss of 2.8% one month later.

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