IPO market activity has recently returned to levels not seen since before the financial crisis. With 70 IPOs in the first quarter and 114 IPOs year-to-date, 2014 is off to the fastest start since 2000 and is on pace to finish with nearly 300 IPOs, which would be the highest annual total in 14 years. An important trend is that the average offering size has decreased in recent years. Thus far in 2014, the average IPO size is approximately $181.7 million, which is the lowest average in the past seven years. Contrast this to an average IPO size of approximately $542 million in 2008, approximately $388 million in 2009, approximately $310 million in 2012 ($197.7 million without the Facebook IPO) and approximately $237 million in 2013.
Thus far in 2014, only three IPOs have exceeded $1 billion in aggregate proceeds and only eight IPOs have exceeded $500 million in aggregate proceeds (compared to 25 IPOs in 2013). In addition, thus far in 2014, nearly 40% of IPOs have fallen within the $50 million to $100 million range, which is an increase from 2013 when approximately 29% of IPOs fell within the $50 million to $100 million range (approximately 32.1% of IPOs in 2013 fell within the $100 million to $250 million range). On the low end of the scale, thus far in 2014, approximately 17.5% of IPOs (20 IPOs) raised between $10 million and $50 million in aggregate proceeds, compared to 12% (29 IPOs) in 2013 (five IPOs in 2013 raised $10 million or less in aggregate proceeds, but no IPOs have fallen within that range thus far in 2014). (Source: IPO Vital Signs, May 27, 2014).