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Key Metrics for Recent Technology and Life Sciences Initial Public Offerings
This report analyzes key aspects of initial public offerings (IPOs) for technology and life sciences companies that went public in 2016. Our IPO Survey was developed for clients, friends and others interested in considering the data surrounding recent IPO activity. Downloading the full report will provide you access to a number of tables and charts that offer a graphical view of key parameters as well as a sense of recent trends.
Overall IPO activity for technology and life sciences companies declined in 2016 with some improvement in the second half of the year. A total of 51 technology and life sciences IPOs were completed in 2016, compared with 94 in 2015 and 140 in the banner year of 2014.
There were 17 life sciences IPOs completed in the second half of 2016 (compared to 16 in the first half), while technology IPOs increased to a total of 14 in the second half of 2016 (from only 4 in the first half). This reduced level of overall IPO activity included turbulence in worldwide equity markets in January 2016, a month in which no technology IPOs were completed.
Transaction sizes for technology IPOs in 2016 were lower than in other recent periods, with over half of the deals being under $100 million. The life sciences saw a similar dynamic, with 30% of the IPOs under $25 million and 75% under $100 million.
Half of the life sciences IPOs closed flat to down on the first day of trading. In contrast, technology IPOs generally performed well – over 90% of technology IPOs traded up on the first day of trading.