Last week the Wall Street Journal gave a rundown of what has been a very hot IPO market. The Journal reported that there were 42 listings in the first two months of 2014 compared to 20 from the same timeframe in 2013 and keep in mind 2013 was a very good year for IPOs.
Data was cited from Renaissance Capital LLC that as good as things are for IPOs they are nowhere near 2000-era levels for listings or filings.
Of course there are several investment products that target the IPO market including the longstanding First Trust US IPO Index Fund (NYSEARCA:FPX) which has been a successful fund in terms of assets raised and performance (obviously future results are unknowable).
The impact of IPOs is an important dynamic to understand.
One part of the equation is that IPOs represent the creation of new supply; supply of shares available for investment or speculation. During the buildup of the internet bubble which arguably started with Netscape in 1995 the supply of (internet) equities increased at a remarkable pace but demand increased at an even faster pace for almost five years.