The IPO market remained active in the first quarter of 2021 as it followed the continued momentum seen in the second half of last year. Nasdaq hit a record first quarter after it welcomed 275 Initial Public Offerings (IPOs) that raised $74.4 billion in total proceeds.
Out of these new listings, 196 were Special Purpose Acquisition Companies (SPACs), investment vehicles that raise funds via an IPO in order to complete a targeted acquisition. Nasdaq also welcomed 14 operating company listings resulting from SPAC business combinations this quarter, which is double the number Nasdaq saw in last year’s comparable period.
In total, Nasdaq ushered in roughly 87% of the total number of IPOs that listed on Nasdaq all of 2020.
In March alone, 98 IPOs chose Nasdaq as their listing exchange, including 70 SPACs and one exchange transfer. Additionally, 16 healthcare companies chose to list on Nasdaq in March, continuing our lead in the sector with a 100% healthcare win rate for the month. The month’s total proceeds raised for IPOs exceeded $26 billion from companies like Diversey Holdings, Alignment Healthcare and ACV Auctions. We also welcomed 7 of the 10 largest IPOs by capital raise including Bumble, Affirm and Qualtrics.
The boom in IPO activity has been mainly credited to the surge in SPACs. In the first two months of 2021, Nasdaq ushered in as many SPAC IPOs as we did in all of 2020, Jeff Thomas, Nasdaq’s senior vice president and head of West Coast listings said at a recent Nasdaq Entrepreneurial Center hosted panel.
Nasdaq’s iconic Times Square bell ceremony came to life in cities across the country: Bumble in Austin, Texas; View in Milpitas, California; and Qualtrics in Provo, Utah. Below we highlight a couple of notable companies that joined Nasdaq this past quarter.
The online thrift store saw its shares jump up around 43% after offering 12 million shares at a price of $14 a pop, the upper end of its targeted range of $12 and $14. The California-based company raised more than $168 million on its first day of trading.
PureCycle Technologies (PCT)
The recycling service company completed its business combination with Roth CH Acquisition I (ROCH) and began trading on Nasdaq in the middle of March. The newly formed company opened at $31.64 a share.
The electric vehicle company completed its merger with SPAC company CIIG Merger and began trading on Nasdaq at the end of March. The U.K.-based company is now worth roughly around $13 billion.
Alignment Healthcare (ALHC)
The Medicare Advantage insurer offered 27.2 million shares at a price of $18 each, the midpoint its targeted range of $17 and $19. The California-based company raised $489.6 million on its opening day.
Bumble’s IPO made big waves in February, as the Texas-based dating app raised $2.15 billion through its listing. It priced its shares at $43 a piece, above its targeted range of $37 and $39. Bumble sold 50 million shares and its stock surged around 70% on its debut.
The shares of the online marketplace soared around 150% in its stock market debut in January. Poshmark offered 6.6 million shares at a price of $42 each, up from its targeted range of $35 and $39 per share, raising more than $277 million.