For tech investors used to last year’s massive initial public offerings and price pops, the last few weeks have been sobering. UiPath priced its IPO below its last private valuation, Compass slashed the size of its IPO and once-hot cloud-computing stocks have tumbled. But according to Kim Posnett, global head of investment banking services for Goldman Sachs, these are minor hiccups in a bull market for tech listings that should grow stronger this year.
The Wall Street firm handled more listings than any other investment bank in 2020, including those in DoorDash, Airbnb and Snowflake, and Posnett expects the parade to continue. At least 50 companies could go public through IPOs or direct listings by the end of June, not including listings through special purpose acquisition companies, Goldman Sachs says. That’s in part due to the volume of highly valued startups primed to make their public debuts and new alternatives to traditional IPOs.
“This tech supercycle for public listings is only accelerating,” said Posnett in an interview.