The ongoing COVID-19 pandemic has played a major part in the diminishing IPO activity that the world has seen for the better part of 2020. IPO activity started declining at the beginning of the second quarter of the year and significantly reduced further by 48% between April and May when you compare the volume of the deals and proceeds to the numbers registered at the same time last year.
The second quarter of this year is not any different from America’s proceeds registered figures that are 30% less than the proceeds registered at the same time last year. Surprisingly, the Asia-Pacific IPO activity increased regardless of the daunting coronavirus pandemic. Experts say that capital markets will remain turbulent or the rest of the year. However, there is light at the end of the tunnel as financial analysts claim the financial markets will pick up by the end of the year or at the beginning of 2021. Here are a few stocks to watch out for and to consider buying in 2021.
This is a Canadian waste management business based in Toronto. It is one of the largest waste management businesses in North America. GFL sold 75 million shares when it first went public in March 2020. It has since then acquired assets projected to generate close to $350 million in sales annually.
Royalty Pharma prides itself on using close to $20 billion to purchase biopharmaceutical royalties for a variety of cancer, heart, neurology, and diabetes-related medication. In 2019, Royalty Pharma closed with a profit of $1.81 billion. They have skilled analysts that help them make very informed decisions to ensure commercial benefits.
Warner Music WMG
WMG is the third-largest record company in the world. It went public on 3rd June and sold over 70 million of its shares on the same day. That translated to $1.9 billion for the already existing shareholders. WMG has an impressive compound annual growth of 10.8%.
Zoominfo is a cloud-based platform that provides tens of thousands of companies, including zoom video, the infrastructure to expand globally. Zoominfo sold 44.5 million shares when it went public in June. Zoom video alone has gained more than 622% of its value since going public.
Although the COVID-19 virus shook the financial markets, the companies that had positioned themselves strategically are still expanding despite the uncertain times. There is a lot to expect in 2021, you just need to prepare yourself adequately.