The US initial public offering (IPO) is expected to take a break from five consecutive weeks of strong momentum and raise more than $1 billion.

According to collected data, last week's initial stock offering was led by electric vehicle manufacturer Zeekr Intelligent Technology Holdings Ltd., which set the longest record of more than $1 billion in a row in the past three years. This trading flow further shows that the US IPO market has taken a turn after two years of sluggishness.

Although people such as Goldman Sachs Group CEO David Solomon (David Solomon) and New York Stock Exchange (New York Stock Exchange) President Lynn Martin (Lynn Martin) are optimistic about the recent pace of listing, they warn that by the end of 2024, this may just be a continuing trend rather than a wave.

Paul Abrahimzadeh (Paul Abrahimzadeh), co-head of equity capital markets in North America at Citigroup Inc. (Citigroup Inc.), said, “I don't think this summer will be very busy, but there will be several companies going public, and they will be an important barometer of the health of the IPO market.”

The data showed that the $1.03 billion raised on US exchanges last week was the lowest since the first week of April. The calendar reflects external factors, such as listed companies that submitted applications last year will soon need to update their financial results with new figures.

John Kolz (John Kolz), head of US equity capital markets at Royal Bank of Canada (Royal Bank of Canada), said: “We experienced a bit of calm, but this coincided with the corporate profit window and the expiration of financial statements.”

Games Global Ltd. requested the withdrawal of its IPO registration on Monday, citing current market conditions, according to a document. The listing plans to raise $275.5 million and will begin trading on Tuesday. This will be the only sizeable US IPO this week.

Accept reality

So far, US IPOs have raised $7.2 billion this quarter, an increase of 25% over the same period last year. Investors are also very enthusiastic. Companies considering listing are facing the most popular environment for several months.

The data shows that of the 32 IPOs that were priced this quarter, the issuance amount of 5 exceeded the announced issuance amount, and 3 were higher than their respective market pricing ranges. Shares of these companies have increased by an average of 17.5% since listing.

“This recent wave is a very positive phenomenon,” said Colts of the Royal Bank of Canada. “Investors arrived and followed up in the aftermarket. This gives us great confidence to tell our clients that the IPO market is currently a very viable path.”

The second quarter is probably the longest IPO window this year because there are no public holidays or school holidays, and the US presidential election may put pressure on the calendar.

People familiar with the matter said that temperature-controlled warehousing and logistics giant Lineage Logistics (Lineage Logistics) has a target valuation of more than 30 billion US dollars and is expected to lead a number of private companies to go public for the rest of the quarter. According to reports from people familiar with the matter, Solera, a car data and software service provider supported by Vista Equity Partners, is also planning to go public as early as July.

Citigroup's Abrahimzadeh said: “The September window is likely to be very active, especially for tech companies backed by private equity — including the services and software industries.” “Some high-profile, high-growth unicorn companies — which they've been patiently waiting until now — may end up targeting the last window between Thanksgiving and the end of the year, depending on how the market moves after the election.”