Recent data suggests the market is in a down period for initial public offerings or IPOs. This is particularly evident in the technology sector where according to reports only two companies have gone through with IPOs so far in 2016.
Ivey finance professor Steve Foerster tells The Deal Room and the publication Business Insider there tends to be hot and cold trends for IPOs and that corporate buyouts have not replaced IPOs in the marketplace.
"When you think of why a company would want to IPO, the primary benefit is usually to be able to raise capital, the secondary benefit might be liquidity of having shares publicly traded and so that makes it attractive. But if a private firm or a startup is able to raise funds without having to go the IPO option… then there'd be less urgency in terms of IPOing."
