Q2 2018 IPOs: Auditor Market Share and Stats


There were 73 initial public offerings in U.S. markets between April 1, 2018, and June 30, 2018. These IPOs raised over $25 billion for the quarter, an increase of $7.3 billion from last quarter and over $10.3 billion from the same period last year.

As seen in the graph below, the amount raised this quarter was the highest amount raised in Q2 for the last 5 years.

Despite the increase in number of IPOs and amount raised this quarter, none of the IPOs were among Russell 1000 and 2000 companies.

Industry Analysis

Spotify Technology S.A., the music-streaming company (NAICS 518210), raised the most this quarter, bringing in over $9.2 billion. That is more than triple the amount of the second highest amount raised, $2.75 billion raised by AXA Equitable Holdings, Inc. (NAICS 524210). In fact, this is the highest amount raised since Q3 2014 and the fifth highest amount raised since 2000.

Interestingly, this IPO was not your traditional IPO. Spotify Technology S.A. was the first company to IPO through Direct Listing. In February 2018, the SEC approved the NYSE proposal to permit companies to use direct listing method for the IPO. Direct Listing allows smaller companies to IPO without having an underwritten offering, according to a recent case study conducted by Harvard Law School. The shares are not sold from the company, but from the shareholders directly.

Pharmaceutical Preparation Manufacturing (NAICS 325412) with thirteen new IPOs, had the most number of transactions this quarter, raising over $1.4 billion.

Accounting and Legal Representation

Spotify Technology S.A. [SPOT] audited by Ernst & Young and represented by Latham & Watkins, raised $9,245,852,192.

AXA Equitable Holdings, Inc.[EQH] audited by PricewaterhouseCoopers and represented by Debevoise & Plimpton and Sullivan & Cromwell, raised $ $2,745,000,000.

Auditor Market Share

In Q2, the Big Four audited 68% of the IPO market.

PwC had 19 IPO audit clients, the most for all firms in Q2. Ernst & Young had 12 IPO audit clients that raised over $11.1 billion, the highest amount raised this quarter.

Among non-Big Four firms, Marcum had five IPO audit clients that raised $295 million. WithumSmith + Brown had three IPO audit clients that raised approximately $1.2 billion, the highest amount among all non-Big Four firms.

Emerging Growth Companies

69 of the 73, or 95%, elected to register as emerging growth companies (“EGCs”).


Another great quarter for IPOs. The upward trend continues.

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