Overview
There were 60 initial public offerings in U.S. markets between January 1, 2018, and March 31, 2018. These IPOs raised over $17.7 billion for the quarter, an increase of almost $5 billion from last quarter and approximately $5.5 billion from Q1 of last year.
As seen in the graph below, the amount raised this quarter was the highest amount raised in Q1 for the last 5 years.
Notable IPOs in the Russell 1000 and Russell 2000
In Q1 2018, there were 19 IPOs among the Russell 1000 and 2000 companies.
ADT Inc. audited by PricewaterhouseCoopers and represented by Paul Weiss Rifkind Wharton & Garrison LLP, raised $1,470,000,000.
Hudson Ltd. audited by Ernst & Young and represented by Conyers Dill & Pearman and Davis Polk & Wardwell LLP, raised $748,937,535.
Industry Analysis
PagSeguro Digital Ltd., a payment service company in Brazil (NAICS 522320), raised the most this quarter, bringing in $2.3 billion, after going public in January, according to Investor’s Business Daily.
Pharmaceutical Preparation Manufacturing (NAICS 325412) with ten new IPOs, had the most number of transactions this quarter, raising over $781 million.
Auditor Market Share
The Big Four audited 57% of the IPO market.
#Auditor market share for 60 #IPOs in Q1 2018: PwC (22%), EY (20%), Deloitte (13%) KPMG (2%), all others (43%).
— Audit Analytics (@AuditAnalytics) April 25, 2018
As seen in the table below, PwC had 13 IPO audit clients, the most for all firms in Q1. Ernst & Young had 12 IPO audit clients that raised over $6.1 billion, the highest amount raised this quarter.
Among non-Big Four firms, WithumSmith + Brown and Marcum tied with six IPO audit clients, which raised $1.5 billion and $552 million, respectively.
Emerging Growth Companies
52 of the 60 IPO companies, or 87%, elected to register as emerging growth companies (“EGCs”).
Conclusion
Overall, a strong start to 2018, both in the number of IPOs and the amount raised.
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