Number of IPOs rises to highest total since 2000

The quarterly count of companies that went public in Q2 grew 42% year-over-year. This figure surged over the past year, and the Q2 total of 88 marked the highest total since Q3 2000 (135). In addition, the 156 public offerings in the first half of 2014 have already surpassed the full year totals in 2011 and 2012 (136 and 137, respectively), and have amounted to more than two-thirds of the 2013 total (230). This uptick also showed no sign of reversal. The number of companies offered in June (35) grew 84%, and was the highest monthly total since August 2000.

Gross proceeds (including over-allotment) from initial public offerings (“IPOs”) grew 57% year-over-year and reached $22.6 billion in Q2. This marked the highest sum since Q4 2013 ($26.4 billion), and the second highest Q2 sum since 2000 (Q2 2012 was bolstered by Facebook’s $16 billion offering). June activity also showed strength in terms of proceeds—the $9.0 billion raised grew 131% year-over-year, and represented the highest amount since October ($13.4 billion). It was the highest June total since 2007.

Combined with Q1, the first half of 2014 has shown growth in gross proceeds of 51% year-over-year, and the $34.0 billion total was the highest first half total since 2000. In terms of the number of offerings, the first half total of 156 represented 66% growth year-over-year, and was also was the highest total since 2000.

Going forward, there are 104 companies that released initial preliminary filings in Q2. This represents growth of 51% year-over-year, and the highest quarterly total since at least 2007. Mapi Pharma, an Israeli pharmaceutical drug manufacturer, is scheduled to offer this week.

The Health Technology sector continued to drive the growth in IPO activity in 2014. The sector’s 52 offerings through the first half of 2014 have already surpassed the sector’s annual high since 2001 (51 in 2013), and represented one-third of all deals (out of 19 FactSet sectors). The sector is also on pace to break a previous peak for offerings set by the Finance sector in 2004 (60 IPOs). On the industry-level, the Biotechnology industry has been most active with 27 offerings in the first half of 2014 (as compared to 34 for the full year 2013). The Health Technology sector has also been bolstered by companies in Pharmaceuticals industries, which added another fourteen IPOs in 2014, and those in the Medical Specialties industry, which added another ten.