This week is a big test for the IPO market


What’s going on: Overall, it’s been a successful month for initial public offerings, with deals worth $ 38.2 billion listed on the stock exchange, according to Dealogic. This is the biggest September in value ever.

Mike Novogratz, Founder and CEO of Galaxy Digital Holdings, said there is currently a large imbalance between supply and demand, given the number of new offerings entering the market during a period of insider selling high.

One example: Some analysts have signaled concerns about Palantir, the Silicon Valley secret data analysis firm co-founded by Peter Thiel and which is due to start trading on the New York Stock Exchange on Wednesday.

The Wall Street Journal reports that the company could be valued at nearly $ 22 billion when it first started trading. This is a heavy valuation for a company that has never made a profit.The Workplace Asana app, which is also due to list its shares on the New York Stock Exchange on Wednesday, is also sparking a lot of conversation.

According to Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, the new listings, especially in the tech sector, have been of such interest even during the pandemic, as investors have few other places to go. park their cash flow and generate significant returns.

See here: Snowflake, a cloud-based data warehousing company that went public earlier this month, saw its shares skyrocket more than 90% above its IPO price of $ 120.

“We’ve got all this money to wash up because of the huge stimulus we’ve seen from central banks – it’s almost like people don’t know where to put their money,” Streeter told me, warning that investors should keep their portfolios. diversified. “Obviously, there is no guarantee that prices will continue to rise. “

You should know this $ 200 billion company

When Jack Ma started an obscure payment service to boost his online shopping empire 16 years ago, few expected him to be successful. Now that this service forms the backbone of Ant Group, a financial monster that could be worth over $ 200 billion, reports my CNN Business colleague Sherisse Pham.

Named after a bug because of its founder’s belief that “small is mighty,” Ant Group is anything but tiny in China. He’s gearing up for a much-anticipated public offering in Hong Kong and Shanghai that could mark the second time Ma has set a record for the largest IPO ever.

“Ant Group is truly the crown jewel of Jack Ma and… the Chinese Internet industry,” Edith Yeung, general partner of Race Capital, told Sherisse.

The pitch: it’s one of the biggest tech companies in the world and the biggest online payment platform in China. The app has established its presence in all aspects of the country’s financial life, from investment accounts and micro-savings products to insurance, credit scores and even dating profiles.

But it all started as a side project. In 2004, very few people in China had debit or credit cards, and buyers and sellers using Alibaba’s e-commerce platform needed a reliable way to handle payments.

Ma commissioned Alibaba’s finance team to create Alipay. The service would act as a trusted third party, holding buyers’ money in escrow and only returning it to sellers after goods have been received and buyers confirmed that they are happy with what they got.

” When I started [Alipay], everyone said, “Jack, this is the dumbest model we’ve ever seen, no one will use it,” “Ma said in a 2014 interview on” 60 Minutes “.

Fast forward: Today, Alipay has 711 million monthly active users and processed 118 trillion yuan ($ 17.2 trillion) in payments during the 12 months of June.


Monday: Another round of Brexit negotiations begins

Mardi: First US presidential debate; Confidence of American consumers; Micron (MICR) gains

Wednesday: Palantir and Asana begin trading on NYSE; ADP employment report

Thursday: Data on personal income and expenses in the United States; ISM manufacturing index; Unemployment claims in the United States; Bed bath and beyond (BBBY), Constellation marks (STZ) and PepsiCo (DYNAMISM) gains

Friday: US Jobs Report


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