Record Numbers Of IPOs, Mergers Likely On Wall Street In 2021

This summer is likely to be one rife with new investment deals, CNN writes.

Some of the big deals likely to come down the pipeline include China-based DiDi, the ride-hailing service, which is set to raise almost $4 billion. And then there’s Robinhood, the popular online brokerage, which is expected to be a big initial public offering (IPO) when it hits later in the summer.

CNN notes that mergers and acquisitions have been doing well, too, with over 15,500 tie-ups totaling $2.9 trillion in worth — a record for the first six months of a year.

And those high volumes are expected to last through the second half of the year, per the report. JPMorgan, according to CNN, said that the deals are still being financed with cash but that stock purchases are being used more and more often these days, with valuations going higher and higher.

The report says the IPO market has been doing especially well as of late, with records breaking in terms of post-2000s deal numbers.

According to Renaissance Capital, the period from April to June this year saw 113 deals, which raised almost $40 billion.

“It was the busiest quarter for IPOs in over two decades, a record that was just broken last quarter, as well as the biggest second quarter by proceeds ever,” the group wrote in a report published Friday, per CNN.

CNN adds that Wall Street has so much activity currently that banks are seeing a shortage of analysts. That has led to some senior bankers doing junior bankers’ work as the companies attempt to add more staff.

PYMNTS recently reported on the spate of mergers and acquisitions, noting the month of May had seen $532.9 billion in such deals announced — a record for that month.

The U.S. by itself had seen $1.3 trillion in mergers and acquisitions for the first five months in 2021.