2014 was a huge year for the new issuance market, and that would be true even without the 800-pound magic carpet in the room.
Yes, Jack Ma’s Alibaba IPO was the biggest debut in history, and yes, we’re proud to have played a part in it, but that wasn’t the only story of the year, as our multiple posts on healthcare’s boom probably made clear.
We’ve talked about Alibaba already. We’ve talked about Healthcare ad nauseam. So let’s talk a little about the 17 IPOs that broke $1B.
Those 17 “megadeals” accounted for 56% of 2014’s nearly $94 billion in proceeds (although Alibaba’s $25B debut was responsible for almost half of that percentage). Financials five huge IPOs led the way, with consumer lending and credit issuers dominating the group thanks to IPOs from regional bank Citizens Financial ($3.5B), GE credit card unit Synchrony Financial ($3.0B) and former GM financing arm Ally Financial ($2.6B).
The group also posted above average price performance, with the average IPO from the lot returning 16.3% in its opening session, as compared to a mean of 13.9% across all initial public offerings this year. Furthermore, these firms continue to see steady demand from investors, posting an average offer/current % return of 25.1%, as compared to 17.7% across all 2014 IPOs.
Oh, and those 17 billion-plus IPOs? That total far outpaced the previous record of 10, seen in 2013 and 2001.
Here are a few of the other interesting things that went down in 2014’s new issuance market, including, but not limited to, Alibaba and Healthcare:
- 2014 saw the most IPOs since 2004: its 263 debuts gathered $93.5B in proceeds
- Leading the charge with 102 debuts was Healthcare, nearly doubling their 2013 output (53) and outpacing second place Technology by a whopping 59 IPOs
- 77 of Healthcare’s 102 IPOs were from Biotechnology & Pharmaceutical companies, with Pharma’s 41 Debuts nearly tripling 2013’s 16
- Healthcare also led the way in terms of price performance, posting the best average offer-to-current at 36.9%, and accounting for four of the ten best first-day performances of the year
- REIT’s Paramount Group arrived in November with the largest debut from that space ($2.6B)
- Shell Midstream Partners ($1.1B) and Antero Midstream Partners’ ($1.2B) debuts now stand as the top two IPOs in the Energy MLP sector
- Not to be outdone, the Consumer Services sector tripled its previous year’s proceeds with $34.1, thanks in no small part to Alibaba
- 53 non-U.S. domiciled companies hit the market, tying 2007 for the most ever
- 17% came from Israel, a relatively new player in the international space, and 24.5% came from China, including Alibaba and JD.com, the year’s 6th biggest IPO
As you can see, it was an eventful twelve months for the new issuance market.
With a dominant sector, a highly anticipated debut that more than lived up to the hype, and emerging regions helping elevate 2014 to rare heights, there was no shortage of stories to discuss all year long. Can 2015 possibly top it? Is there an IPO looming that might rival Alibaba? Will Healthcare continue to soar?
We’ll discuss those very possibilities, next week, on the Ipreo Blog.
For more details on 2014, visit Ipreo Ink.