Retail Investors Are Helping Small IPOs Defy This Market Turmoil
- Vast majority of March listings raised less than $50 million
- Institutions usually account for 90% of buying in larger deals
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Retail investors are piling into stock offerings, fueling a jump in new listings by micro-cap companies in the face of a banking crisis that is sidelining bigger deals.
This month, 80% of the US deal flow is from initial public offerings that raised less than $50 million, according to data compiled by Bloomberg that excludes SPACs. And those offerings are attracting small investors, not the big institutional buyers.