IPO market nears peak as valuations hit 20-year high, but analysts are concerned

Low interest rates and high returns have fueled record IPO demand, but with valuations for newly public businesses now at levels last seen during the dot-com bubble, some experts are worried the boom is coming to an end.

According to Renaissance Capital, the United States had its best quarter for initial public offerings in almost two decades, with 115 firms generating $40.7 billion. In the first quarter, IPOs also hit a new high.

In the first half of the year, enthusiasm from firms and investors drove up the number of IPOs and overall proceeds, but returns are dropping, which might further moderate IPO prices.

Here’s what investors should know.

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