Nasdaq Welcomes 300 Companies in 2020, Expects ‘Robust’ IPO Pipeline in 2021
Building off its mid-year momentum, Nasdaq is capping off 2020 by welcoming 300 initial public offerings (IPOs), raising a total of $77.86 billion. With a total of 179 operating companies listing in 2020, which represents an 83% win rate in the U.S. market, Nasdaq extended its leadership to 28 consecutive quarters.*
Nasdaq also welcomed 73% percent of U.S. business combinations, including DraftKings (DKNG) and Luminar Technologies (LAZR). In addition to the robust year of IPOs, 21 companies switched their corporate listings from the NYSE to join Nasdaq, and four companies transferred 19 bonds from the NYSE.
For 2020, Nasdaq’s top IPOs by proceeds raised include:
- Airbnb (ABNB): $3.49 billion
- Royalty Pharma (RPRX): $2.17 billion
- Warner Music Group (WMG): $1.92 billion
- Eastern Bankshares (EBC): $1.79 billion
- Maravai Lifesciences (MRVI): $1.62 billion
- Reynolds Consumer Products (REYN): $1.22 billion
- GoodRx (GDRX): $1.14 billion
- Wish (WISH): $1.10 billion
- Li Auto (LI): $1.09 billion
- Array Technologies (ARRY): $1.04 billion
In 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.Nelson Griggs, President of Nasdaq Stock Exchange
Nasdaq continued to be the leading U.S. exchange for Health Care, Technology, Consumer and sponsor-backed IPOs, with win rates for the first three groups of 96%, 76% and 78%, respectively. Nasdaq also dominated in sponsor-backed listings, winning 90% of venture capital-backed IPOs and 70% of all private equity-backed IPOs.
Griggs noted on CNBC that the IPO market was initially pinpointed toward technology, healthcare and growth companies, but has expanded to a fairly broad-based, sector-driven IPO market as companies adapted to the virtual roadshow environment.
“You saw success beget success,” Griggs said recently on CNBC, noting that the average IPO is up over 50% this year, higher than both the Nasdaq Composite and S&P 500.
Given the investor enthusiasm around IPOs, Griggs anticipates the momentum in the IPO market to continue into the new year.
“We are lining up a very, very robust first quarter,” Griggs said. “A lot of deals that were looking at the end of next year, maybe fourth-quarter deals, have moved up to a second-quarter timeframe. It’s a very open IPO market, stocks are performing well, and we expect that to continue.”
*SOURCE: SEC Edgar filings and FactSet as of December 16, 2020.
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