"US Companies IPOed This Year Valued at 24 Times Sales... Highest in 20 Years"

[Image source=AP Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] As the US stock market has recently attracted significant investor attention due to a series of technology companies' initial public offerings (IPOs), an analysis has emerged indicating that the valuations of these companies are at their highest levels in about 20 years since the dot-com boom.

On the 13th (local time), the Wall Street Journal (WSJ), citing analysis by Jay Ritter, a professor at the University of Florida, reported that the market capitalization on the first trading day after listing of US technology companies that went public this year reached 23.9 times their revenue over the previous year (median value). This is the highest level in about 20 years since the dot-com boom in 2000 (49.5 times).

Companies recently listed on the New York Stock Exchange have been raising substantial funds amid strong investor interest. For example, the lodging-sharing company Airbnb saw its stock price surge 85.8% above the offering price on its first day of trading on the 9th, pushing its market capitalization beyond $83 billion, surpassing that of delivery company FedEx. The market capitalization of food delivery company DoorDash stands at $56 billion, approaching the scale of General Motors (GM).

The WSJ reported that experts believe the increased valuations of IPO companies are driven by growth expectations for technology companies and the heightened enthusiasm for stock investments due to low interest rates.

Meanwhile, the US video game platform Roblox has postponed its planned listing on the New York Stock Exchange, originally scheduled for this year, to next year, and fintech company Affirm has also delayed its initial public offering planned for this year to after January next year.

This content was produced with the assistance of AI translation services.