A record-breaking start
Even in a “normal” world, the exuberance of the IPO markets in Q1 would be amazing. And this is not a “normal” world.
In almost every respect the quarter shattered previous records: It was the busiest quarter in more than 20 years (there were 100 IPOs). Proceeds raised broke all previous records (reaching $39.2 billion). An unprecedented nine IPOs raised more than $1 billion in the quarter. SPAC fundraising in Q1 eclipsed what was raised in all of 2020 combined (raising $87 billion in 298 offerings).
What this suggests is that investor appetite remains incredibly high. In total, more than $126 billion was invested into IPOs and SPACs by investors in the quarter. First day pops averaged just over 30 percent. While total average aftermarket returns lagged towards the end of March, the pace of issuance and the enthusiasm that investors brought to the market have not waned.
Read our Q1’21 report to explore:
- IPO activity and increased issuances in the financials, consumer discretionary, and industrial sectors
- Venture capital and private equity activity and proceeds
- Future trends including the demand for SPACs, what’s driving valuations, what consumer trends may fall away as we return to the “new normal,” and a Q2 2021 outlook.
Private company owners now have a range of different approaches they can take in order to tap into public markets – besides traditional IPOs, we are seeing increased interest in Direct Listings and, obviously, the SPACs are furiously on the hunt for qualified pre-IPO candidates. There may never be a better time to consider an exit via the public markets—if that was your long-term plan all along.
Conor Moore, Leader, KPMG Private Enterprise
About the IPO Insights Report Series
The IPO Insights report series delivers the latest information and analysis on quarterly IPO activity and performance to help business leaders take their companies to the next level.
