Insight - Record IPO binge in 2021 leaves investors hung over


Nubank co-Founder Cristina Junqueira, left, Founder and CEO David Velez, center, and co-Founder Edward Wible, from Brazil, pose for photos outside the New York Stock Exchange before their company's IPO, Thursday, Dec. 9, 2021. - AP

INITIAL public offerings (IPOs) around the world raised a record US$594bil (RM2.5 trillion) in 2021, riding the coattails of stock market rallies, yet often disappointing investors with their subsequent stock performance.

Companies ranging from technology start-ups to blank-cheque acquisition firms flooded the market with offerings, capitalising on investors’ willingness to place speculative bets as low interest rates and the reopening of economies thanks to Covid-19 vaccines fuelled their appetite for risk.

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