Q3 2019 IPOs: Auditor Market Share and Stats


There were 53 initial public offerings in U.S. markets between July 1, 2019, and September 30, 2019. These IPOs raised over $13 billion for the quarter, a decrease of roughly $19 billion from last quarter and a decrease of $11 million from the same period last year.1

As shown in the graph below, the IPO activity this quarter was the second highest in terms of amount raised and IPO Count in Q3 for the last 5 years.

Industry Analysis

There were two unicorns this quarter: SmileDirectClub, Inc. [SDC] and Peloton Interactive, Inc. [PTON], both US-based companies. SmileDirectClub, a dental equipment & supplies company, raised $1.35 billion, topping the charts in terms of proceeds this quarter and ranking as the 86th highest IPO since 2000.

Peloton, an electronic & other electrical equipment company, raised $1.16 billion – the second highest in terms of proceeds this quarter and ranks the 105th highest IPO since 2000.

Accounting and Legal Representation

SmileDirectClub, Inc. was represented by Skadden, Arps, Slate, Meagher & Flom and Latham & Watkins. At this time, we are unable to determine the Company’s auditor.2

Peloton Interactive, Inc. was audited by Ernst & Young and represented by Fenwick & West LLP and Latham & Watkins LLP.

Auditor Market Share

In Q3, the Big Four audited 54.7% of the IPO market.

Ernst & Young had 11 IPO audit clients, the most for all firms in Q3. EY’s clients also raised the highest amount among all firms, bringing in over $3.66 billion.

Marcum followed with seven IPO audit clients, which raised $1.31 billion. Deloitte, PwC, and KPMG each had six IPO clients and brought in proceeds of $1.82, $1.33, and $1.26 billion, respectively.

Emerging Growth Companies

49 of the 53, or 92.5%, elected to register as emerging growth companies (EGCs).


There was a decline in the number of offerings and the amount raised this quarter compared to last quarter and same period last year in part due to market volatility; it’ll be interesting to see if this continues in the Q4 IPO market.

For more information on IPOs, please contact us.

1.This analysis reflects a change in the original numbers presented in Q3 2018’s post. There are now 67 reported IPOs with gross proceeds of $13.75 billion for Q3 2018.

2.The audit opinion contained in the registration statement for SmileDirectClub referenced “SDC Financial, LLC and subsidiaries.” Per our methodology, we do not consider this opinion applicable to the Company, as it does not specifically reference SmileDirectClub.