The IPO markets next challenge: Pinterest and Zoom

The next tech"unicorns" are set to launch in the public market on Thursday, hoping this time to meet expectations after the rather chaotic IPO of Lyft.

Pinterest is one of the most anticipated IPOs for this year and is expected to start with public bids first. People familiar with the case have reported that the price is likely to start higher than the initial offer. However, Pinterest's IPO may be overshadowed by Zoom Video Communications.

Both companies are preparing for a public start on Thursday, entering a public market that has been quite hostile to new companies. Zoom is expected to attract a lot of interest and the price range has been raised.

The rise in broad indexes since the beginning of the year and low volatility have created the perfect incubator conditions for new companies, and many analysts expect this year to be record on primary public offerings in terms of money that is generated.

But, for example, Lyft, which came out public at the end of March, was in a rather difficult situation after its debut. And it was appreciated far above its original price range, but stocks fell 8.7% on the first day. Lyft is currently traded at a price that is 22% lower than the original one.

The introduction of Pinterest and Zoom will predetermine the ambitions of the IPO market ahead, especially ahead of the upcoming IPO of Uber Technologies, scheduled for release in early May. After the failed IPO of Lyft, Uber has already begun to target a market valuation that is below initial expectations.

The first excitement of the "hot" IPO market in 2019 was quickly dimmed after Lyft. In general, companies that went public in 2019 are 12% higher than their initial prices. Technological and internet companies are even performing even better, with a 34% increase, which even outstrips NASDAQ, which has so far grown by 20%.

Source: The Wall Street Journal

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