These are favourable times for active money managers – The amount of publicly traded companies is on the rise, showing a long-term trend.
It is all happening due to the numerous companies’ being brought to market via initial public offerings (IPOs).
Buying shares via an IPO can grant investors significant returns, as the list you are about to see of the top-performing stocks that went public over the past three years showed.
The list excludes blank-check companies, including the ones that are known as SPACs.
Many people are wondering how big the boom truly is. There have been 591 IPOs in the U.S. and Canada so far this year, including SPACs, and 630 followed in 2020, according to FactSet, the data provider.
The 18-month total of 1,221 IPOs is comparable to the 1,535 of the past five years through the end of 2019.
The amount of publicly traded companies had constantly been declining for years, partly because corporate managers didn’t want to get burdened by the complex reporting and disclosure requirements of the Sarbanes-Oxley Act of 2002, said Brad Lamensdorf, the CEO of investment adviser ActiveAlts.
The parameters for the following list have been set for data compiled by FactSet.
Blank-check companies were completely excluded.
A SPAC usually is meant to effect a transformational merger within two years of its formation.
The merger will circumvent the normal IPO process.
A regular SPAC goes public at a price of $10 a share and gets traded around that price until a merger deal is made public. The most famous examples of these include Virgin Galactic Holdings Inc. SPCE, DraftKings Inc. DKNG and others.
This is a list of the 20 best-performing IPOs over the past three years: