An article in The Wall Street Journal said the market for initial public offerings (IPOs) is facing its worst year in two decades. In the first eight months of 2021, traditional IPOs raised $100 billion. This year, they have raised $5.1 billion.
WSJ said that late last year, many companies were in the “final stages of preparing to go public, encouraged by the best 18 months ever for U.S. initial public offerings.” But the January 2020 issue of The Socionomist warned that a shift to negative mood could diminish IPO activity:
Companies who want to exchange equity for cash should consider accelerating their efforts to do so while mood remains elevated. If you want to raise capital — or exit your ownership position — at lofty, even if not record, valuations, this is the time to do it. The valuations that investors are willing to put on your company will plummet if you wait too long.
To learn more about social mood’s influence on optimism and pessimism, which fuel periods of interest or caution regarding investments, read “The Wave Principle Delineates Phases of Social Caution and Ebullience.”
If you look closely, you can see patterns in social mood that help you predict social trends. Learn more with the Socionomics Premier Membership.