US IPO market grows to six-year high in 2013

PwC sees continued IPO expansion in 2014

The US IPO market grew to a six-year high this year and will continue to expand next year, PwC predicts.

The number of IPOs in the US rose to 237 in 2013, as of December 17, from 146 in all of 2012, according to PwC’s IPO Watch. That’s the highest number of IPOs in a year since 2007, before the global financial crash. At the same time, total proceeds of IPOs in 2013 more than doubled to $56.8 bn from $26.9 bn in 2012, excluding the Facebook offering.

Offerings in the fourth quarter exceeded those of earlier quarters, with a total of 77 IPOs, PwC says. That’s a 22 percent increase from the 63 IPOs in the third quarter and slightly more than double the 38 listings registered in the fourth quarter of 2012. Fourth-quarter IPO proceeds jumped to $24 bn from $11.8 bn in the third quarter and $8.2 bn in the fourth quarter of 2012.

‘Demand for IPOs continued to build during the fourth quarter, supporting the momentum as we enter 2014,’ says Henri Leveque, leader of PwC’s US capital markets and accounting advisory services, in a press release. ‘Driven by increasing investor appetite for growth companies, low volatility and strong equity markets, the field of IPOs has continued to broaden across industry sectors. We expect the new issuance window to remain open as we head into 2014.’

The financial services sector led the increase in the number of IPOs in 2013, with a total of 18 offerings. It was followed by technology with 16, consumer with 14 and healthcare with 13. In terms of proceeds raised, the energy sector led the market with $6.4 bn. It was followed by the consumer sector, which raised $5.6 bn, and financial services, with $4.7 bn.

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