The year 2024 holds significant implications for the U.Sstock market, a reality steeped in optimism and uncertaintyAs the Federal Reserve embarked on a rate-cutting cycle, the federal funds rate gradually decreased from its peak, infusing the market with a sense of hope for investorsThis optimistic environment was particularly fueled by the explosive growth in artificial intelligence (AI) technologies, which led to the share prices of tech giants like Nvidia (NVDA.US), Apple (AAPL.US), Google (GOOG.US), Amazon (AMZN.US), and Taiwan Semiconductor Manufacturing Company (TSM.US) reaching new heightsEstablishments within the technology sector continued to break records, buoying major indices such as the Nasdaq (IXIC.US), the Dow Jones Industrial Average (DJI.US), and the S&P 500 (SPX.US).

However, the remarkable gains in these benchmarks also sparked discussions regarding whether the returns from AI investments could match their lofty valuations

This consideration left some investors, including the renowned Warren Buffett, wary, leading to substantial reductions in his long-held stake in AppleAlongside these financial dynamics, geopolitical tensions intensified in 2024, with price fluctuations in commodities and cryptocurrencies casting a shadow over global economic prospects and stock market performance.

In this turbulent environment characterized by both risk and opportunity, which companies have gained the favor of capital market participants? A glance at the fundraising activities within the U.Sstock market throughout this year reveals interesting insights.

Recovery in IPO Financing

The atmosphere of rising stock prices has revitalized initial public offering (IPO) activities, with the market rebounding from the lows seen in 2022 and 2023. According to data from Wind, the New York Stock Exchange (NYSE) is projected to see new IPO fundraising reaching approximately $16.1 billion in 2024, while the Nasdaq is expected to pull in around $23.6 billion

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In total, the two exchanges might amass nearly $39.7 billion, reflecting a 26.1% increase over 2022 figures and a substantial 46.0% rise compared to 2023.

Excluding Special Purpose Acquisition Companies (SPACs), the fundraising on the NYSE and Nasdaq is anticipated to be $14.76 billion and $16.42 billion, respectively, surpassing levels seen in previous yearsNotably, the gap between these two exchanges has narrowed, which may suggest a trend favoring Nasdaq listings for SPACs.

IPO Powerhouses

In 2024, the standout IPO was that of Lineage (LINE.US), a real estate investment trust focused on cold storage and other commercial properties, which raised an impressive $5.102 billionFollowing closely was StandardAero (SARO.US) in the aerospace and defense sector, which secured $1.656 billionThe third-largest amount came from Amer Sports (AS.US), which includes premium sports brands such as Arc'teryx, raising $1.571 billion.

The best-performing new stock this year has been Nano Nuclear (NNE.US), a supplier of nuclear energy solutions, which saw its stock price soar by a staggering 529.75%, catapulting its market capitalization to $902 million

The meteoric rise of companies like Nano Nuclear can be attributed to the burgeoning demand for energy, particularly in light of AI's energy-intensive computing needs, thereby making the energy sector a novel darling for investorsNotably, this company has outpaced popular internet firms like Reddit (RDDT.US), which has seen an increase of 402.09% year-to-date.

Chinese Stocks on U.SExchanges

2024 also welcomed a wave of Chinese companies listed in the U.SThe data indicates that there may be 25 China-based IPOs this year, collectively raising a net amount of $2.307 billion, significantly higher than the $711 million recorded for the entirety of last yearThe largest Chinese IPO was Amer Sports, with proceeds amounting to $1.277 billionFollowing it were Geely's electric vehicle brand Zeekr (ZK.US), which raised $401 million, and two providers of smart driving solutions: Pony.ai (PONY.US) and WeRide (WRD.US), which garnered net amounts of $241 million and $106 million, respectively.

Among the Chinese IPOs, the standout performer has been Changan Energy (PTLE.US), a logistics service provider for marine fuels, experiencing an increase of 123.75% since its listing

Hot on its heels were Amer Sports and the advertising service provider Starry Fashion (STFS.US), with gains of 116.77% and 76.25%, respectivelyOn the contrary, the worst-performing IPO among Chinese stocks this year was the software-as-a-service provider Yunxuetang (YXT.US), facing a staggering decline of 79% since its launchHowever, the most significant capital influx in 2024 has not stemmed from new shares but rather from refinancing activities across the market.

Refinancing Activity Post-IPO

In the years leading up to 2018, post-IPO fundraising activities on the NYSE and Nasdaq were less vibrant than new stock listings, but the tide began to turn in 2020 when the low interest rates in developed economies fueled a stock market surgeThis revival saw post-IPO fundraising activities take the lead, even surpassing IPO fundraising totalsIn 2024, fundraising amounts on the NYSE and Nasdaq have reached $68.1 billion and $64.7 billion, far surpassing the concurrent IPO fundraising figures of $16.1 billion and $23.6 billion.

Notably, Boeing (BA.US) raised $10.688 billion through a public offering, an amount that already accounts for 72% of the NYSE’s IPO fundraising total ($14.76 billion without SPACs) thus far in 2024, making it a true “capital magnet” this year

Boeing has encountered numerous challenges in recent years, notably delays in delivering its flagship 737 series, ongoing “safety door” incidents, and the impact of strikesIn the first three quarters of 2024, the company reported an 8.07% decline in total revenue, amounting to $51.275 billion; its gross margin transformed from a profit of $5.027 billion the previous year to a loss of $402 million; and its core operating losses expanded significantly to $7.769 billion, up 304.85% year-over-yearMoreover, Boeing’s free cash flow yield a staggering negative figure of $10.212 billion.

By the end of September 2024, Boeing held cash and cash-equivalents totaling $10.5 billion against total debt that had soared to $57.7 billionGiven these grim figures, fundraising was an unavoidable necessityIn October, the company resorted to issuing common and preferred stock to bolster its finances, intended for purposes including debt repayment, working capital, and capital expenditures, while also financing its subsidiaries.

Conclusion

The uptick in new stock listings and post-IPO fundraising in the U.S