More than 1,000 companies conducted an initial public offering (IPO) on the Nasdaq and NYSE exchanges during 2021. Together, these 1,046 companies raised $668 billion, an average of $639 million per offering.
Building on recent trends, special purpose acquisition companies (SPACs) led the way with more than 600 IPOs during 2021. But traditional IPOs also had a big year with more than 400 transactions. And direct listings grew from just three in 2020 to seven in 2021.
While direct listings are the least common type of IPO, the companies that used this method raised an average of nearly $9 billion. Traditional IPOs raised an average of $834 million. And SPACs raised just over $400 million per IPO.
The total amount raised from IPOs more than doubled between 2020 and 2021, and more than quintupled between 2019 and 2021.
Coinbase Global, Inc. [COIN] led the way in terms of gross proceeds by raising $28.7 billion from its Q2 2021 IPO. The Coinbase IPO outraised the previous largest IPO – Alibaba Group [BABA] – which IPOed in 2014. In total, 38 companies raised $1 billion or more in 2021. Six of the seven direct listings, 28 traditional IPOs, and 4 SPACs raised $1 billion or more during 2021.
Auditor Market Share – All IPOs
Once again, Marcum and Withum were the top two audit firms of IPOs. Together, these two firms audited nearly 50% of 2021 IPOs. Marcum audited 323 IPO clients, 314 of which were SPACs. Withum audited 193 IPO clients, 192 of which were SPACs.
Auditor Market Share – Excluding SPACs
Excluding SPACs, the Big Four firms were engaged by two-thirds of IPOs. EY was engaged by the most clients with 23% of non-SPAC IPOs. Deloitte’s non-SPAC clients raised the most with nearly $70 billion.
The percentage of companies that identify as emerging growth companies (EGCs) at IPO has continued to increase. In 2017, 59% of IPOs claimed the EGC status. In 2021, more than 95% of IPOs claimed the EGC status.
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