Triad Securities and Argus Research publish Q2 2020 IPO, Secondary Market Summary and Outlook
Triad Securities Corp, a full-service, agency-only brokerage firm, has issued its Q2 2020 Quarterly Snapshot on US IPOs and secondary offerings.
Published in conjunction with Argus Research, the report provides ECM (equity capital market) trends along with tables showing the performance of the largest Q2 2020 IPOs, the most promising upcoming IPO candidates, the top 20 Unicorns and top 20 underwriter performance.
In the second quarter, the IPO and Secondary market roared back to life, with the total number of IPOs (46) exceeding those from Q1. High-quality companies came public in Q2 and the ratio of positive issue-opens to negative-issue opens jumped to 5:1, up from 2:1 previously. The IPO pipeline remains healthy and 115 companies have filed with the SEC, up from previous quarters.
Secondaries experienced a tremendous gain, rising 74% quarter over quarter and 47 per cent year-over-year. Activity was led by Technology and Healthcare IPOs and by Fortune 500 companies raising capital while operations–and balance sheets–were being devastated by the pandemic. Only four Unicorns came public in the quarter as the unicorn trend continues to wind down.
Investors favoured industries that appear well-positioned to thrive on the other side of the pandemic, such as Biotech, Medical Devices and Genetics in Healthcare, and Cloud-Based Connecting Platforms from the intersection of the Tech and Communication sectors.
John Eade, President, Argus Research, says: “We were not surprised by the comeback in IPOs and Secondaries, especially given that the stock market volatility has settled down, and the impacts of the stimulus and support from the Federal Reserve. In our Q120 report we predicted that companies impacted by the shut-down would be looking to raise capital through secondaries, and that has proven to be correct.”
Kevin Schultz, Triad Securities Chairman, says: “Our belief is that professional traders benefit from the 360-degree service we offer, including the best information and tools to be successful. The Argus Quarterly IPO reports provide important insight to traders on the ability of companies to raise capital, key upcoming market trends, and IPO performance. Clients have let us know that the Quarterly reports, coupled with our New Issue Service (a streamlined data service on upcoming IPOs and Secondaries), give them the best possible support for trading new issues.”