After another active quarter, the US IPO market is on track to see record levels of post-tech bubble issuance. There were 60 deals completed in the 3Q13, more than double the 3Q12’s 26 IPOs. With an average total return of 27%, driven mostly by well-received consumer, technology and health care deals, IPO performance trounced benchmark indices. Sprouts Farmers Market, Benefitfocus, Foundation Medicine and Rocket Fuel all traded up more than 90% in their debuts. Amid continued investor interest in growth, venture-backed IPO activity accelerated sharply, with 27 offerings, the most in a quarter since the 4Q07 (33 deals). Looking ahead, several large, high-profile companies are lining up to go public in the coming months, including Twitter, Alibaba and Hilton. We caution that the US IPO market remains captive to external events: volatility arising from US budgetary concerns and the debt-ceiling debate could stretch IPO timelines. That said, the recovery that began to take hold earlier this year is showing no signs of subsiding, setting the stage for a breakout year for US IPOs.
View our 3Q 2013 US IPO Review
