The fall IPO calendar is heating up, with a slew of hotly-awaited companies, such as Rivian and InstaCart, on deck to list. Yet it's already been a banner year for equity raises via the IPO process in the U.S. — on track to beat last year's record.
As of the end of September, 19 companies raised more than $1 billion via IPOs on the Nasdaq and New York Stock Exchange. The top five are Coupang (CPNG), which raised $4.6 billion, DiDi Global (DIDI), which raised $4.4 billion, Bumble (BMBL), which raised $2.5 billion, Robinhood Markets (HOOD), which raised $2.3 billion and AppLovin (APP), which raised $2.0 billion.
As of the same time in 2020, 15 companies had raised $1 billion or more via IPOs — with another eight joining them by year-end. The top three, Snowflake (SNOW), Airbnb (ABNB) and DoorDash (DASH) each raised between $3 billion and $4 billion.
This year through September companies have raised a total of $98.0 billion through the IPO process on U.S. exchanges. This includes foreign issuers of American Depository Receipts (ADRs), such as Didi, Oatly (OTLY) and Full Truck Alliance (YMM).
There were no major direct listings that raised capital, such as Coinbase (COIN), so those are excluded. For purposes of comparison with prior years, Special Purpose Acquisition Companies (SPACs) are also excluded, as they did not make up a material portion of capital raises prior to late 2020.
That $98.0 billion this year compares to $69.9 billion through September 2020. Last year ended with a record $102.5 billion of equity raised — a number that will likely be eclipsed this year by the end of October. The prior record was 2014 with $87.7 billion that includes the largest U.S. IPO of all time, Alibaba (BABA), which raised a monster $25.0 billion.
Breaking down this year's IPOs by sector (according to the Bloomberg Industry Classification Systems, or BICS), technology and health care raised the most money, while utilities and energy raised the least. The full breakdown is here:
Offering Size ($B)
For investors looking to trade new listings, Kathy Donnelly, proprietary trader and co-author of "The Lifecycle Trade," told Yahoo Finance in a written statement, "Ninety-one percent of stocks eventually undercut their first trading day price low, so there is no hurry to get in on day one or even day two."
Jared Blikre is an anchor and reporter focused on the markets on Yahoo Finance Live. Follow him @SPYJared