"May's traditional IPO offerings remained steady with technology companies the most active, followed by healthcare. A robust pipeline should lead to a strong close to Q2. The SPAC lull continued with new SPAC filings down 10% from last month's decline, but a small increase in number of SPACs declared effective brought the YTD total to 330 SPACs."

Craig Clay, President, Donnelley Financial Solutions

Congratulations to the 48 May issuers who raised over $10 billion and their advisors on the successful completion of their IPO. DFIN was proud to have supported:

"A Change is Gonna Come...” not only a popular song lyric but a message from the SEC to SPAC mania. The SEC guidance around warrants and comments around safe harbor have created a significant pause in SPAC activity with only 13 SPACs pricing in April, an 88% decrease from last month's count of 109. Corrections and adjustments are needed to remain viable, and many predict SPAC formations will reset to a brisk, but less manic pace in the future."

Craig Clay, President, Donnelley Financial Solutions

SPAC vs. Traditional IPO

As of December 2020, more than 200 companies had used a SPAC (special purpose acquisition company), to go public, rather than the more traditional IPO (initial public offering) method. SPACs continue to dominate business headlines, with SPAC transactions accounting for some $170 billion in equity thus far in 2021.

Preparing an S-1 IPO requires meticulous attention to detail and a deep understanding of regulatory requirements. Companies must provide comprehensive financial statements, detailed business descriptions, and extensive risk disclosures. It’s the company's formal introduction to the public and the level of detail can be overwhelming, especially for first-time filers. Learn who needs to file an S-1 IPO registration statement and why.

Will 2021 Be a Good Year for U.S. Markets?

Despite the pandemic, 2020 was the biggest year for IPOs since 2014, and I am confident that the positive trend will continue for IPO stocks in 2021. It’s already getting off to a fast start with the Wall Street debut of mobile game developer Playtika Holding (PLTK), which benefits from strong videogame demand and a popular lineup of titles like Slotmania, Bingo Blitz, and Board Kings.

Whether you're a startup in search of capital to expand, a biotech in need of cash to advance their drugs through clinical development, or a portfolio company with investors looking to exit, you have choices. To determine what's best for your business and figure out how to choose an exit strategy, read on.

Business Exit Strategy Types

There are three common exit strategies available for private companies: an initial public offering or IPO, a direct listing, and a reverse merger with SPAC, commonly known as de-SPAC.

"The shortest month of the year brings a jaw dropping number of offerings surpassing last month's record total and notching an all-time high for February IPO pricings. 73% of the offerings were SPACs bringing more suitors to the doors of private companies."

Craig Clay, President, Donnelley Financial Solutions

Congratulations to the 133 February issuers who raised over $40 billion and their advisors on the successful completion of their IPO. DFIN was proud to have serviced:

"Every new beginning comes from some other beginnings end...appropriate lyrics for what we are seeing in the market. Significant number of newly listed companies have debuted from the closure of their de-SPAC business combo and this is only the beginning. 2021 is crushing prior years as 91 SPACs in month of January were added to the 200+ SPACs already looking for their target making a record pipeline of ~300 SPACs searching for an acquisition!"

Craig Clay, President, Donnelley Financial Solutions

"2020 - an unforgettable year for IPOs! As I look back on all the successes we shared with our clients - perseverance, hard work, compassion, and great partnerships led us to successfully complete 197 IPOs during a year with so many challenges. An incredibly active pipeline, robust valuations, vaccine deployment and newfound hope brings much optimism for 2021."

Craig Clay, President, Donnelley Financial Solutions

Congratulations to the 74 December issuers and their advisors on the successful completion of their IPO. DFIN was proud to have serviced:

"As we close out 2020, the normal holiday pause has been replaced with a holiday party as issuers line up to make their public debut before year end.  Soaring valuations are moving technology companies to the front of the line."

Craig Clay, President, Donnelley Financial Solutions

Congratulations to the 44 November issuers and their advisors on the successful completion of their IPO. DFIN was proud to have serviced: