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Within six weeks of their completion, over 2,850 corporations and special-purpose entities raised over $600 billion in IPOs, setting a 2007 record for the number of transactions and revenue.

This month, Rivian Automotive Inc., a prominent electric vehicle company, raised about $ 12 billion in New York. China Telecom’s initial public offering is the largest in Asia. In August, it was valued at 54 billion yuan (US $ 8.4 billion), while InPost SA, a Polish postal service provider, placed first in Europe with € 2.8 billion (US $ 3.2 billion) in January in Amsterdam.

These firms took advantage of record high share prices as the central bank’s assistance permitted investors to raise funds. In addition, the economic recovery from the epidemic, as well as stimulus measures, aided business profitability.

However, not everything happened as planned. The SPAC mania, which peaked earlier this year, was affected by regulatory scrutiny. Over the summer, China’s harsh crackdown on internet businesses shocked global markets, stopping a record spike in Chinese listings in the US and throwing a pall over the Hong Kong IPO market.

“We’re transitioning from an excellent IPO market with lots of liquidity and well-performing transactions to a more regular situation,” said Gareth McCartney, co-director of global stock markets at UBS Group AG.

Dizzying heights

The retail shopping craze that has pushed equities markets soaring this year, as well as investor interest for hot industries, has resulted in mind-boggling surges following the IPO. Rivian, which has yet to produce revenue, more than quadrupled in its first three sessions, momentarily overtaking Volkswagen AG in market value, while Korea’s SK Bioscience Co. soared by 160 percent in its debut.

The S&P 500 is selling at more than 21 times its predicted earnings for next year, which is much higher than the 10-year average. Stocks have reached their highest level since the dot-com boom of 2000.

“Markets may move towards a correction as monetary stimulus programs tighten and global economy slows quickly,” said Suzanne Streeter, senior economist at Hargreaves Lansdown Plc.