The U.S. IPO market this year has reached a 14-year high in proceeds raised, according to a new report.
In addition, 288 companies made their public debuts this year as of Dec. 4, up from 238 IPOs for all of 2013 and representing the most active environment for new offerings since 2007.
The latest quarterly IPO Watch, published Tuesday by PwC US, reported that IPOs raised a total of $83.9 billion, a 47% increase over the amount raised in 2013, and close to the $92.6 billion raised in 2000.
Mid-October volatility caused the IPO market to moderate slightly in the fourth quarter before it regained ground in November.
For the quarter as of Dec. 4, there were 60 public listings representing $13.4 billion in proceeds, compared with 77 public company debuts with a value of $24 billion in proceeds in the 2013 fourth quarter, ended Dec. 31.
The 2014 year-to-date IPOs included 18 spin-off IPOs, a 38% increase over the 13 transactions last year.
“Capital markets activity surged in 2014, as U.S. companies took advantage of the continued low interest rate environment and strong investor appetite for higher return investments in new equity issues and high yield debt,” Henri Leveque, a partner in PwC’s deals practice, said in a statement.
Healthcare dominated total IPO volume, accounting for 39% of total IPO volume for all of 2014, the report said.
On a total proceeds basis, technology was the top industry in 2014, driven by Alibaba’s $31.5 debut.
During the fourth quarter, the REIT sector led in value with $2.9 billion in IPO proceeds with just three offerings, capturing 71% of the IPO value in the financial services sector.
“Given positive economic forecasts for the U.S. and continued strength in corporate earnings, the IPO markets remain a popular exit for financial sponsors, and provide newly public companies with a platform for liquidity and valuation,” Leveque said.