The US IPO Market Prepares for a Fall Surge
The US IPO market has seen 188 companies raise $40 billion in 2014,
a 44% increase in deal count year-over-year. This high level of
activity looks set to continue as a growing backlog suggests that
100 more IPOs could
raise as much as $40 billion and double the year's proceeds
That would bring 2014's total to $80 billion, up 46% over
2013 and the most proceeds raised since 2000.
Alibaba's potentially $20 billion offering has attracted more
attention than any other IPO this year, but there are many other
significant companies in the pipeline. Private equity is behind 46
IPOs that could raise $15 billion, including two we expect to be
billion-dollar deals. A number of tech companies have delayed
offerings but now head into a receptive IPO market. Biotech IPOs
made up over a quarter of all deals this year and show no sign of
slowing down; health care companies account for 30% of the
So far this year, 261 companies have submitted
initial IPO filings
, surpassing the full-year 2013 total of 256. Positive performance
in broader indices along with strong gains from the
Renaissance IPO ETF
(up 14% since May) set the stage for a robust autumn in the US IPO
market with an uptick of heavyweights, most notably the Chinese
e-commerce behemoth Alibaba.
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Renaissance Capital's Fall 2014 US IPO Preview
originally appeared on IPO investment manager Renaissance Capital's
web site renaissancecapital.com.
The information and opinions expressed herein were prepared by
Renaissance Capital's research analysts and do not constitute an
offer to buy or sell any security. Renaissance Capital, the
Renaissance IPO ETF (symbol: IPO)
Global IPO Fund (symbol: IPOSX)
, may have investments in securities of companies mentioned.