Nasdaq Has Largest Year For IPOs In A Decade
Leading U.S. exchange by number of IPOs and proceeds raised for the second consecutive year
Largest year for IPOs on Nasdaq in the past decade by number of IPOs and proceeds raised
$278 billion in market value switched to Nasdaq in 2020
Nasdaq announced that in 2020 The Nasdaq Stock Market welcomed 300 initial public offerings (IPOs), raising a total of $77.86 billion. A total of 179 operating companies listed on Nasdaq in 2020, representing an 83 percent win rate in the U.S. market.* Nasdaq extended its leadership to 28 consecutive quarters. In addition to the successful year in IPOs, 21 companies switched their corporate listings from the NYSE to join Nasdaq, and four companies transferred 19 bonds from the NYSE.
At the end of 2020, companies that listed on Nasdaq with an IPO raised more than any other U.S. exchange, including Airbnb (raised $3.49 billion), Royalty Pharma, (raised $2.17 billion), Warner Music Group (raised $1.92 billion), Eastern Bankshares (raised $1.79 billion), Maravai Lifesciences (raised $1.62 billion), Reynolds Consumer Products (raised $1.22 billion), GoodRx (raised $1.14 billion), Wish (raised $1.10 billion), Li Auto (raised $1.09 billion), and Array Technologies (raised $1.04 billion). Nasdaq also welcomed 73% percent of U.S. business combinations, including DraftKings and Luminar Technologies.
2020 was a transformative year for the public markets â€“ it was also the largest year for IPOs on Nasdaq in the past decade by number of listings and proceeds raised.
— Nasdaq (@Nasdaq) December 17, 2020
â€śIn a year where access to the capital markets was more crucial than ever, we are proud to be the U.S. exchange leader in IPO capital raised for the second consecutive year,â€ť said Nelson Griggs, President, Nasdaq Stock Exchange. â€śWeâ€™re committed to providing our clients with innovative solutions to access and navigate the capital markets at all phases of their lifecycle.â€ť
In addition to the record year in U.S. IPOs, Nasdaq continued to support issuers through its efforts to revitalize the capital markets by advocating for key regulatory developments including:
- Amendments to SEC rules governing proxy solicitations to enhance the integrity of the proxy voting process by ensuring proper disclosure of potential conflicts of interest;
- Amendments to modernize the SEC shareholder proposal rule, which raised the bar for investors to submit proposals for a vote at companiesâ€™ annual meetings; and
- Encouraging the SEC to support transparency and withdraw its plan to increase the 13F reporting threshold to $3.5 billion.
2020 NASDAQ U.S. LISTINGS HIGHLIGHTS
- U.S. listings market leadership: Nasdaq welcomed 300 IPOs, raising $77.86 billion. The total proceeds raised by companies listing on Nasdaq with an IPO was the most on any U.S. exchange, and the most on Nasdaq in the past decade.
- Leading U.S. exchange for Health Care, Technology, Consumer and sponsor-backed IPOs: Nasdaq continued to dominate in sponsor-backed listings, winning 90 percent of venture capital-backed IPOs and 70 percent of all private equity-backed IPOs. Win rates for Health Care, Technology and Consumer sectors were 96 percent, 76 percent and 78 percent, respectively.
- Continued momentum in listing transfers: Nasdaq welcomed 21 switches from the NYSE in 2020, representing $278 billion in market value, including AstraZeneca, Keurig Dr Pepper, and AEP. The total market value of all companies joining Nasdaq from NYSE since 2005 has exceeded $1.88 trillion. Nasdaq also welcomed companies through transfers upon a SPAC business combination including Velodyne Lidar and Eos Energy Storage.
- Seamless transition to virtual IPOs: Nasdaq successfully adapted all elements of its IPO process to a virtual environment, including successful IPO execution through Bookviewer, and inclusive bell ceremonies and first trade experiences through the Nasdaq MarketSite app.
- Strong demand for Nasdaqâ€™s governance and Investor Relations intelligence solutions: Nasdaq continues to enhance its unique suite of capabilities to serve the evolving needs of its corporate clients. Demand is strong for Nasdaqâ€™s insights that help companies better understand and engage with shareholders through its unparalleled expertise across equity markets, Investor Relations, and governance.
*SOURCE: SEC Edgar filings and FactSet as of December 16, 2020.
Boston group is the largest member affiliate of the Security Traders Association.
The addressable market for private company secondary transactions is up to $1.5bn.
TP ICAP has set strategic objectives of aggregating liquidity, electronification and diversification.
A similar service is available on the BIDS platform in the US equity market.
The Retail Price Improvement Program will offer midpoint prices to retail investors.