Overview

There were 100 IPOs in U.S. markets in the first half of 2020, an increase of 4 from the second half of 2019 and from the same period last year. This was surprising, as the coronavirus (COVID-19) pandemic is still ongoing.

These 100 IPOs total up IPOs size of approximately $30.4 billion.

The table below shows the number of IPOs every half year over the last 3 years.

Stock Exchanges

Nasdaq welcomed 68 IPOs in the first half of the year, raising a total IPOs size of approximately $17.3 billion.

There were 32 issuers from the globe listed on the NYSE or NYSE American, raising a total IPOs size of approximately $13 billion including a surge of SPAC listings that are increasingly being chosen as an alternative path to the public markets.

The table below shows where the issuers listed in the first half of the year.

The Top 10 IPOs

There were six issuers raised not less than $1 billion in the first half of the year, led by Royalty Pharma Plc [Nasdaq: RPRX], a U.S. company that invests in royalty interests in pharmaceutical and biopharmaceutical products which raised over $2.1 billion. The others are Warner Music Group Corp. [Nasdaq: WMG], PPD, Inc. [Nasdaq: PPD], GFL Environmental Inc. [NYSE: GFL], Reynolds Consumer Products Inc. [Nasdaq: REYN], and Churchill Capital Corp III [NYSE: CCXX.U].

The table below shows the top 10 IPOs in the first half of the year.

Securities Counsel

Latham & Watkins LLP led with 9 IPO clients in the first half of 2020, followed by Skadden, Arps, Slate, Meagher & Flom LLP, and Winston & Strawn LLP, with 8 and 7 IPO clients respectively.

Davis Polk & Wardwell LLP’s IPO clients raised the highest amount among all firms, bringing in nearly $4.2 billion. Simpson Thacher & Bartlett LLP ranked second in total IPO size, with 4 IPO clients raising over $2.7 billion, while Skadden, Arps, Slate, Meagher & Flom LLP ranked third, with 9 IPO clients total up approximately $2.5 billion IPO size in the first half of 2020.

The table below shows the securities counsel market share for the first half of 2020.

Auditor

Marcum led with 19 IPO audit clients in the first half of the year, followed by PwC and Withum, with 17 and 16 IPO audit clients respectively. Combined, the Big Four audited 50 IPOs, or 50%, of the IPO market in the first half of 2020.

PwC’s IPO clients total up the biggest IPO size among all firms, bringing in nearly $5.7 billion. Deloitte ranked second in terms of clients’ total IPO size, with 10 IPO clients with over $5.6 billion IPO size.

The table below shows the auditor market share for the first half of 2020.

Conclusion

The IPO market started the first half of 2020 weak as the growing concerns of coronavirus (COVID-19) rapidly increased, creating market volatility at its highest level since the 2008 financial crisis. However, the market can expect an upcoming strong IPO market in the second half of the year builds off the activity in May and June. It will be interesting to see if there are continuing impacts from the pandemic and the election draws closer on IPO activity as the year progresses.

Summary of Methodology

This study covers 100 issuers that priced IPOs and listed on the NYSE or Nasdaq in the first half of 2020. Data was compiled from publicly filed (i) registration statements on Form S-1 or Form F-1; (ii) final prospectuses; and (iii) IPO Calendar data from Nasdaq.com.

However, issuers that originally listed on US OTC Markets and performed secondary public offering and eventually uplisted on the NYSE or Nasdaq are not covered in this study.

Stock performance information was sourced from Yahoo Finance.

Hexcellence Consulting has experienced IPO consulting team focus on listing in US Stock Market,

namely NYSE, Nasdaq and OTC Markets.

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