Daily Spotlight

IPO Activity Remains Hot

What a difference a year makes. At this this time in 2020, the IPO market had ground to a halt as the onset of the coronavirus pandemic shuttered the world economy. One year later, with vaccines being distributed and investors forecasting sharp, stimulus-driven growth in the economy, the IPO market is surging. IPO activity jumped 280% year-over-year in 1Q21, and was even up 23% compared to 4Q20. By the numbers, 101 operating companies raised funds through IPOs in 1Q21, up from 25 in 1Q20 and from 77 last quarter. Including SPACs, approximately 400 entities raised funds. Investor demand was strong for IPOs, and investors were typically rewarded: the average non-SPAC IPO opened 30% above its offering price in 1Q21, just below the 31% average in the prior quarter. Investors favored industries that appear well-positioned to thrive on the other side of the pandemic, such as Biotech (in Healthcare), and Cloud-Based Connecting Platforms (from the intersection of the Tech and Communication sectors). Looking into the balance of 2021, we think the market for IPOs will remain strong, with about 100 companies having filed with the SEC and numerous promising blockbuster Unicorns still in the pipeline. ...  77 last quarter. Including SPACs, approximately 400 entities raised funds. Investor demand was strong for IPOs, and investors were typically rewarded: the average non-SPAC IPO opened 30% above its offering price in 1Q21, just below the 31% average in the prior quarter. Investors favored industries that appear well-positioned to thrive on the other side of the pandemic, such as Biotech (in Healthcare), and Cloud-Based Connecting Platforms (from the intersection of the Tech and Communication sectors). Looking into the balance of 2021, we think the market for IPOs will remain strong, with about 100 companies having filed with the SEC and numerous promising blockbuster Unicorns still in the pipeline.   more

Market Podcast

Analyst
Quick Notes

Weekly Economic Commentary