US IPO market activity accelerated sharply in the 2Q13, with 61 companies raising $13.0 billion. It was the most active quarter for US IPOs in nearly six years. As the stock market continued to climb higher, investors shifted from the yield plays that dominated the 1Q13 to biotechs and fast-growing technology companies. The rise in issuance was also driven by a spike in private equity-backed IPOs, which more than doubled 1Q13 and 2Q12 levels and included large LBOs such as SeaWorld and HD Supply. The average total return improved to 21%, with the consumer, technology and health care sectors, the lifeblood of the US IPO market, producing the highest gains. Though the Fed’s hints at a retreat from stimulus efforts brought a dose of renewed volatility to the markets last week, investors showed a willingness to continue putting money to work in IPOs, as long as valuations were adjusted. Overall, the recovery in deal flow in the 2Q13 coupled with a surge in filing activity augurs well for the rest of the year.
View our 2Q 2013 US IPO Review
