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Norway’s sovereign fund, NBIM, has been making waves in the US initial public offering (IPO) market, with participation in high-profile listings such as Birkenstock, Instacart (NASDAQ:), and Arm Holdings (NASDAQ:) Plc. This trend of cornerstone investment is perceived as a risk mitigation strategy by industry experts, according to Brad Miller of UBS Group AG (SIX:) and Josh Weismer of Mizuho Financial Group Inc.
Earlier in the year, NBIM’s investment portfolio saw the inclusion of listings like Savers Value Village Inc. and Nextracker Inc. This pattern of participation in IPOs is not just limited to NBIM but also includes other notable investors such as BlackRock Inc (NYSE:)., Franklin Templeton, and AllianceBernstein (NYSE:) LP.
In a sign that validates this growing trend, existing investors have been increasing their stakes. Notably, Bernard Arnault and Sequoia Capital have upped their investments in this year’s top IPOs. This activity showcases the growing confidence and interest in the US IPO market among both new and existing investors.
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