Flood of IPOs from tech firms expected in 2021

The continuing roll out of a Covid-19 vaccine has meant the prospect of a swift economic recovery has risen.

As a result, experts predict that there will be a flood of Initial Public Offerings (IPOs) in 2021, particularly amongst fast growing tech companies who will use share issuance to raise much needed investment capital.

The combination of low-interest rates, more businesses going digital and a raft of venture-backed businesses that have grown substantially in the past decade has created the ideal environment for businesses to go public.

Technology and software firms, as well as those whose business model is based around remote working, virtual gatherings and online working tech, have all seen a significant increase in demand in 2020, resulting in ideal market conditions for their IPOs.

Tariq Husain, CEO at Macalvins, said: “The number of IPOs on markets on both sides of the Atlantic has remained more buoyant than other economic indicators during the current crisis.

“With the efficacy of vaccines seemingly exceeding expectations, it looks likely that improving economic confidence will prompt more businesses and particularly high-growth tech firms to press ahead with IPOs.”

He added: “Good timing is a critical element of a successful IPO and 2021 looks set to offer a good window for well-prepared businesses to offer IPOs.

“However, to take advantage of the possibility of heightened investor confidence and potentially strong markets in 2021, businesses considering IPOs need to act now to appoint professional advisers and get robust and attractive business plans in place.

“Diligent and careful preparation in consultation with experienced advisers is vital and businesses should not rush ahead without it.”

Macalvins has a strong track record in assisting high-growth tech firms with corporate finance matters.

For advice and further information on IPOs, please contact us.

Posted in Technology.