#IPOWave
The term #IPOWave refers to a surge or trend of companies going public through Initial Public Offerings (IPOs) within a short period of time. It’s often used in financial markets to describe a bullish phase when many startups, tech firms, or established companies decide to list on stock exchanges to raise capital.
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🔍 What Drives an IPO Wave?
1. Bullish Market Sentiment: When stock markets are doing well, valuations are high and investor confidence is strong.
2. Low Interest Rates: Makes borrowing cheaper and investing in stocks more attractive.
3. Venture Capital Exit: Investors in startups look to cash out through IPOs.
4. FOMO (Fear of Missing Out): Companies rush to go public when they see peers succeed.
5. Regulatory Loosening or Government Support: E.g., tech-friendly policies or simplified IPO rules.
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📈 Past Notable IPO Waves
1999–2000: Dot-com bubble – tech startups flooded the market.
2020–2021: Post-COVID tech boom – record IPOs including Airbnb, Snowflake, Coinbase, and many SPACs.
India 2021: Massive IPOs like Zomato, Nykaa, Paytm, etc.
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🚨 Risks During an IPO Wave
Overvaluation: Hype can push prices far beyond real value.
Underperformance post-listing: Many IPOs drop after debut.
Speculative frenzy: Retail investors may jump in without understanding fundamentals.
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🌊 What to Watch in the Next IPO Wave (2025?)
Sectors likely to lead:
AI and Machine Learning
Green Energy
Blockchain/Web3
Space Tech
Regions: Emerging markets like India, Southeast Asia, and MENA could be active.