According to a recent S&P Global Market Intelligence analysis, more healthcare companies went public in 2020 than they did in the past five years as the COVID-19 pandemic increased investor demand in the sector. In 2020, a total of 263 healthcare companies went public, up from 180 in 2019.
Key highlights from the analysis include:
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- Gross proceeds from IPO activity more than doubled year over year to $43.46 billion in 2020. In the last quarter of 2020 alone, companies raised $13.75 billion in IPO activity.
- IPO activity in the healthcare sector remained robust during the closing months of 2020, with companies raising $13.75 billion during the last quarter.
- San Diego-based Maravai LifeSciences Holdings Inc.'s IPO was the largest for the fourth quarter of 2020, raising about $1.86 billion in proceeds.
- Among the 17 largest IPOs for the fourth quarter tracked, eight companies that went public during the period operate in the biotechnology space.
Healthcare Companies Going Public In Hong Kong
"I think investors in Asia recognize [biotech] is a vital industry for the future," Brad Loncar, a biotech investor and CEO of Loncar Investments, told Market Intelligence. Healthcare listings in Hong Kong, which is the largest market in Asia and the second-largest in the world for biotech IPOs, could be over 30 in 2021, Irene Chu, Hong Kong-based partner and head of new economy and life sciences at consultancy KPMG China, told Market Intelligence.
Goldman Sachs & Co. LLC and Goldman Sachs (Asia) LLC, which are part of Goldman Sachs Group Inc., acted as underwriters on the majority of the top-ranking healthcare IPOs in North America and Asia, respectively, during the fourth quarter of 2020. New York-based Credit Suisse Securities (USA) LLC and Jefferies LLC served as underwriting banks for IPOs by four companies each in North America. Among the Asian IPOs, JPMorgan Chase & Co.'s J.P. Morgan Securities PLC and J.P. Morgan Securities (Asia Pacific) Ltd. were underwriters for three offerings each.
A quarterly report by EY tracked 1,363 IPOs during 2020 worldwide, up 19% over 2019, while proceeds from the offerings totaled $268 billion, a year-over-year increase of 29%. Following the technology and industrials sectors, healthcare took the third spot in terms of IPOs, with 235 offerings totaling $50.4 billion in value.
Read the full article here by S&P Global Market Intelligence