Overview
There were 32 initial public offerings in U.S. markets between January 1, 2017, and March 31, 2017. These IPOs raised over $12.2 billion for the quarter, an increase of almost $5 billion from last quarter, and an almost $10 billion increase from Q1 of last year.
Industry Analysis
Software Publishers (NAICS 511210) raised the most money this quarter, bringing in $3.7 billion, thanks to Snap Inc. The parent company to Snapchat raised $3.4 billion, the highest amount raised since 2014, as they debuted on the New York Stock Exchange in early March.
Pharmaceutical Preparation Manufacturing (NAICS 325412), with 4 new IPOs, had the most number of transactions this quarter, raising just over $187 million.
Auditor Market Share
The Big Four totaled 63% of the market.
Auditor market share for 32 #IPOs in Q1 2017: KPMG (19%), PwC (19%), EY (16%), Deloitte (9%), others (38%).
— Audit Analytics (@AuditAnalytics) April 25, 2017
As seen in the table below, PwC and KPMG were tied for the top spot with six IPOs each, while Ernst & Young had the highest proceeds of the quarter, which totaled over $3.7 billion.
WithumSmith + Brown PC, with four IPOs and a total of $1.7 billion raised this quarter, had the largest market share of non-Big Four firms.
Emerging Growth Companies
26 of the 32 IPO companies, or 81%, elected to register as emerging growth companies (“EGCs”) this quarter, a steady trend downward over the past year.
Conclusion
Q1 of 2017 got off to a much better start than Q1 of 2016, and is expected to continue to improve as the year progresses.