Insight

IPO Insights Q3 2020

An overview of the key findings from the Q3’20 IPO Insights report

Conor Moore

Conor Moore

Partner, National Leader, KPMG Private Enterprise, KPMG US

+1 415-335-8401


 

 

Q3 2020 Highlights

  • There were 81 IPOs in Q3 (the highest deal count since 2000). Combined, they raised a total of $28.5 billion (the largest quarter by proceeds in six years).
  • Healthcare and biotech IPOs made up the lion’s share of new issuances in the quarter, raising a combined $8 billion in proceeds across 38 offerings.
  • Technology stocks – while only accounting for around a quarter of total IPOs – raised $9.7 billion (almost three times the amount raised in the same quarter of 2019).
  • First day gains are indicative of ongoing disruption and uncertainty in the markets which is leading bankers to be somewhat conservative in their valuations. But it also reflects the pent up demand for assets with strong growth potential in a post-pandemic world.
  • Fintechs, Edtechs, Healthtechs and business services offerings (that can demonstrate a clear path to profitability) will likely garner particular attention.
IPO Insights: Q3 2020
Perspectives on quarter 3 2020 IPO market trends
"The massive investment into SPACs suggests that investors firmly believe there are still lots of private companies that could be going public. It also reflects the growing attraction of a SPAC over a traditional IPO for growth companies; SPACs tend to represent a potentially faster and less complex route to a public listing that could provide early investors and employees with a more efficient exit.”
Conor Moore, Leader, KPMG Private Enterprise

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