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40138EQB IPO Q2 Social Posts V2 4

2019 Q2 IPO Review

02 July 2019

Is Profit Over-Rated?

Equiniti’s IPO review draws comparisons with the turn-of-the-millennium dotcom bubble to dive deeper into the comeback of the pre-profit IPOs and provides an update to the UK and overseas listings of the last quarter.

The over-subscription for the Eventbrite, Lyft and Uber IPOs has shown the popularity of companies yet to achieve a profit. Mainstream media commentators have been quick to highlight their unprofitability as if it were a strange phenomenon, but in fact a record-breaking 83% of US IPOs were loss-making in the 12 months leading up to their float. What is driving such high numbers and, given the US exchanges’ ability to influence global sentiment, what does it mean for the IPO market generally?

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