According to the Finance and Economics APP, the US IPO market is expected to get a boost this week, with a fundraising scale of up to $5.5 billion, potentially marking the beginning of a recovery that investors have been eager for during a period of sluggish new listings. Temp control storage and logistics company Lineage will conduct an IPO approaching a scale of nearly $4 billion this week, which may be the most lively new listing since September last year.

Fast-growing tech companies that are faster than their listed peers have virtually no typical 'survivor' IPOs, as these companies attract private funding and avoid new stock issuance analysis. As a result, bankers and US entrepreneurs hope that this latest trend in the IPO market will provide some impetus.

Paul Abrahimzadeh, co-head of Citigroup's North American Equity Capital Markets, said, "From a growth-oriented IPO perspective, the number of companies expected to be listed in the third quarter is much lower than we expected." "Despite the opening of the IPO market and the increase in trading volume, it does not have the sustained momentum we would like to see."

In addition to Lineage, Concentra Group Holdings Parent Inc., a subsidiary of Select Medical Holdings Corp., and OneStream Inc., a private equity giant KKRU (KKR.US), will also be listed this week. If all goes as planned, the series of IPOs will raise a total of $5.5 billion, the highest level since Week 9 Arm(ARM.US) last year.

The US IPO market in the first half of 2024 is still below pre-epidemic levels.

Paul Abrahimzadeh said:"If all goes well, September will be Citigroup's highest-grossing month and possibly the highest-grossing month on Wall Street. Some companies were planning to go public this summer but postponed their listings until September in an effort to complete their IPOs before the US election."

However, Jeremy Abelson, founder and portfolio manager of Irving Investors, said that the lackluster IPO market has caused a paradigm shift in both investors and private companies that make up their portfolios. He pointed out that the days of evaluating short-term gains before stock prices return to normal levels are gone.

Jeremy Abelson said:"This is a transformative and different dynamic that began 6 to 12 months ago. We often talk to our portfolio companies, who expect not a premium, but more acceptance of moderate or discounted valuations until these companies become validated public market assets and have several successful reports."

This shift has led to lower ambitions for some companies, including the cloud finance platform OneStream, which is seeking a $4.4 billion market cap in its IPO, down from its $6 billion valuation in 2021 fundraising.

Bankers unanimously believe that the decline in public market valuations, coupled with unpredictable trading schedules, makes it more difficult to predict trading activity, which may encourage companies to postpone listings until next year. This is particularly true for those who can rely on private investors or have healthy balance sheets, so delaying listing is relatively easy.

Paul Abrahimzadeh said:"If a company's board of directors does not like its listed peers' absolute P/E ratios, the decision is to wait. This has caused many IPOs this year to be postponed until 2025." As investors have recently shifted from large technology stocks to small stocks, Wall Street is eager to see some improvement in IPO activity continue into the traditionally dull August.

However, from this year's overall situation, the US IPO market has raised more than $22 billion, an increase of more than 60% compared to last year, despite its still sluggish performance. This week's series of IPOs could bring the size of the IPO in 2024 to an increase of about 25% over last year. Daniel Polsky, co-director of William Blair & Co., said:"People will focus on this series of IPOs in July to see how they are priced and traded, as a representative of current investor sentiment."