The pandemic's IPO boom might not last long
31 July 2020
The IPO market has boomed during the pandemic era, both for real companies and shell companies, reflecting the broader decoupling of the equity economy and real economy.
Reality check: Things could soon change. And fast.
What's happening: Here's the basic flowchart...
- Investors have been giving issuers mulligans for recent financial performance. If the first half was strong, great. If it was weak, that's okay too because, you know, COVID. Everyone into the pool.
- That added IPO lubricant was based on assumptions that Q2 earnings would be across-the-board awful. But they haven't been, particularly when it comes to technology.
- IPO investors now may need to recalibrate. Maybe only those with demonstrated strength deserve to go public. If performance has been weak, it may be more about the issuer than about the virus.
Caveat: I am presuming some semblance of market rationality, without much basis for doing so.
The bottom line: The IPO window opens and shuts without much warning, and it's never a good idea to let your fingers rest on the sill.
Transcripts show George Floyd told police "I can't breathe" over 20 times
Section2Newly released transcripts of bodycam footage from the Minneapolis Police Department show that George Floyd told officers he could not breathe more than 20 times in the moments leading up to his death.
Why it matters: Floyd's killing sparked a national wave of Black Lives Matter protests and an ongoing reckoning over systemic racism in the United States. The transcripts "offer one the most thorough and dramatic accounts" before Floyd's death, The New York Times writes.
The state of play: The transcripts were released as former officer Thomas Lane seeks to have the charges that he aided in Floyd's death thrown out in court, per the Times. He is one of four officers who have been charged.
- The filings also include a 60-page transcript of an interview with Lane. He said he "felt maybe that something was going on" when asked if he believed that Floyd was having a medical emergency at the time.
What the transcripts say:
- Floyd told the officers he was claustrophobic as they tried to get him into the squad car.
- The transcripts also show Floyd saying, "Momma, I love you. Tell my kids I love them. I'm dead."
- Former officer Derek Chauvin, who had his knee on Floyd's neck for over eight minutes, told Floyd, "Then stop talking, stop yelling, it takes a heck of a lot of oxygen to talk."
Read the transcripts via DocumentCloud.