Flurry of US IPOs Race to Tap Market Ahead of SpaceX Debut

0jow{43fzqp)evkndtj14dmw_media_dl_1.png BloombergArticle content(Bloomberg) — The US IPO market has gone from desolate to bustling in a matter of weeks, with companies looking to raise as much as $17.3 billion this month alone and capitalize on stocks’ resilience.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentDebuts in the coming weeks are set to raise billions of dollars as companies look to go public before what’s expected to be the market’s biggest event of the year: SpaceX’s record-breaking initial public offering, which Elon Musk’s firm is planning for June. Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle content“If I’m any company and I want to have a chance of attracting investors that invest in IPOs, I’d probably rather do it before that deal comes,” said Bob Doll, chief executive officer of Crossmark Global Investments. Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentWith the Iran war still harboring the potential to throw equities into a tailspin, and financial statements for companies seeking to go public needing a refresh later in May, IPO candidates appear to have decided there’s no time like the present.Article contentThe pickup in IPOs this month has raised $5.4 billion, and newly-public companies sparked excitement across Wall Street when they started making people money again. The weighted-average return for the year’s US IPO class, excluding blank-check vehicles and closed-end funds, has jumped to 21% from just 4.6% about a week ago, data compiled by Bloomberg show. That outpaces a 4.2% return for the benchmark S&P 500 Index.Article contentCompanies have been deploying several strategies to increase the likelihood their IPOs will succeed, including lining up so-called cornerstone investors, offering a smaller pool of shares in the deal and starting with attractive discounts to publicly-listed peers.Article contentArticle content“There’s been a lot more price discipline,” said Dan Klausner, head of US public equity advisory at Houlihan Lokey Inc. “And success begets success, where if you have a peer that prices and trades well it becomes appealing to go at a reasonable discount.”Article contentThis week’s expected IPOs are seeking to raise nearly $2 billion in aggregate. X-Energy Inc., a nuclear energy firm that counts Amazon.com Inc. as a backer, is targeting $814 million. The deals would build on what’s been the busiest month for bankers since December saw roughly $8.8 billion raised, primarily driven by Medline Inc.’s blockbuster debut.Article content“We have four IPOs in market slated to price this week, and eight additional IPOs publicly filed last week — so with continued strength in equity markets, we expect ECM to remain highly active in the near term,” said Sumit Mukherjee, head of equity capital markets intelligence at JPMorgan Chase & Co.Article contentThe IPO of billionaire Bill Ackman’s closed-end fund and his hedge fund will test the appetite of retail investors as it seeks to raise as much as $10 billion. The IPO is scheduled to price on April 28.Article contentThe success of the coming deals will shape the landscape for more than a dozen other companies waiting in the wings to price IPOs from artificial intelligence chipmaker Cerebras Systems Inc. to Blackstone Inc.’s data-center acquisition vehicle. Both are expected to target at least $2 billion each, which would deliver consecutive months of notable IPO activity before SpaceX’s likely record-setting debut.Article contentTrending Toronto's condo market 'hits bottom' with some developers looking at selling units below the cost to build Real Estate From where the deals are to where prices dropped most, 5 key things to know about the spring real estate market Real Estate Posthaste: Canada's home prices have now been falling for four years — and haven't hit bottom yet News Don't expect Carney's looming spring budget update to reflect the financial pain Canadians are feeling Personal Finance The Great Correction: Not even Wayne Gretzky's hometown could escape the crash of the 'exurbs' Real Estate Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Toronto's condo market 'hits bottom' with some developers looking at selling units below the cost to build Real Estate From where the deals are to where prices dropped most, 5 key things to know about the spring real estate market Real Estate Posthaste: Canada's home prices have now been falling for four years — and haven't hit bottom yet News Don't expect Carney's looming spring budget update to reflect the financial pain Canadians are feeling Personal Finance The Great Correction: Not even Wayne Gretzky's hometown could escape the crash of the 'exurbs' Real Estate