An active summer season
Even with a traditional summer slow-down, Q3 2021 continued this year’s record-breaking streak. Indeed, this Q3 was the most active in more than two decades. The quarter saw 94 total deals with an average median deal size of $200 million. Four companies raised more than $1 billion in proceeds, led by the much-anticipated debut of Robinhood (a VC-backed fintech) which raised more than $2 billion in July. And investors were rewarded; IPOs averaged an 18 percent return – largely driven by some strong first-day pops.
While investor appetite for traditional IPOs remained strong this summer, activity around alternative routes to market was muted. SPACs saw average deal size fall to a two-year low of $178 million; just 88 new SPACs launched in 3Q, compared to 298 in the first quarter. And only two companies chose to take the direct listing path.
Read our Q3’21 report to explore:
- IPO activity and increased issuances in the healthcare and technology sectors
- Venture capital and private equity activity and proceeds
- Future trends including SPAC activity, investor interest in ESG, and a Q4 2021 outlook
At the height of the SPAC fever, companies were worried they might miss the window of opportunity for going public if they didn’t move quickly enough. Now it seems that the window will remain open longer than most expected. And that is allowing many private market leaders to take a step back and think about the best way to capture the greatest valuations for their company, rather than the fastest exit.
Conor Moore, National 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 inform business leaders looking take their companies to the next level.
