Overview
There were 40 initial public offerings in U.S. markets between April 1, 2016 and June 30, 2016, raising a total of $6.2 billion. Overall, there were more than three times as many IPOs and twice the amount raised compared to last quarter.
All told, there have been 53 U.S. IPOs in the first two quarters of 2016, which raised over $9 billion. For comparison, the same period in 2015 had 117 IPOs that raised over $23 billion.
Industry Analysis
MGM Growth Properties LLC, a real estate investment trust, ranked at the top of amount raised this quarter, bringing in just over $1.05 billion. US Foods Holding Corp. – another large food industry IPO – was not far behind, raising $1.02 billion. Together, the two companies raised 34% of the total amount for the quarter.
Similar to last quarter, Pharma and Biotech companies made the most IPOs, but did not raise as much money. Companies in these industries raised only about seven percent of the total activity in the quarter.
Auditor Market Share
The Big Four audited most of the public companies that went public this past quarter. KPMG and Deloitte were the named auditors for seven new IPO companies, EY had six, and PwC had five. All together, the Big Four served as the auditor for 25 IPO companies, about 64% of the market. Marcum and RSM (tie) rounded out the top five.
Auditor market share for 40 #IPOs in Q2 2016: Deloitte (18%), KPMG (18%), EY (15%), PwC (13%), Marcum (5%), RSM (5%), others (27%).
— Audit Analytics (@AuditAnalytics) July 19, 2016
For the full year, the Big Four remained in the top four positions, but with the order rearranged somewhat. PwC leads halfway through 2016, followed by EY, Deloitte, and KPMG. Marcum, the New York based member of the Leading Edge Alliance, had a good quarter with 5% of the IPO market share.
Auditor market share for 53 #IPOs in 2016 YTD: PwC (19%), EY (17%), Deloitte (15%), KPMG (13%), Marcum (6%), RSM/Withum (4%), others (23%).
— Audit Analytics (@AuditAnalytics) July 19, 2016
Emerging Growth Companies
30 of the 38 IPO companies this quarter elected to register as emerging growth companies (“EGCs”). Last quarter, 12 of 13 did, and for all of 2015, 187 out of 204 (92%) registered as EGCs.
Conclusion
As anticipated, the amount of IPOs did increase from the first quarter of 2016, but the overall trend is still down from last year.