On this the last day of the third quarter, let’s take a look back at initial public offering activity in the second quarter of the year, which featured the biggest IPO since 2000 in terms of proceeds, according to Audit Analytics.
There were 13 IPOs with proceeds greater than or equal to $1 billion last quarter, with cryptocurrency company Coinbase Global leading the way raising more than $28.7 billion, becoming the first public listing of a major crypto company. This makes Coinbase the largest IPO in the last 21 years and the only one that wasn’t a traditional IPO:
Unlike a traditional IPO, in which new shares are created, underwritten, and sold to the public, Coinbase chose the direct listing route, in which no new shares are created and only existing, outstanding shares are sold with no underwriters involved.
Deloitte was the audit firm for Coinbase’s historic IPO, while PwC audited the second-biggest IPO of Q2—ride-hailing company DiDi Global, which raised more than $4.4 billion, placing it 14th largest overall since 2000. But neither Deloitte nor PwC was the leader in IPO auditor market share last quarter.
According to the Audit Analytics analysis, it was EY that led in terms of IPO audit clients with 32, totaling more than $12.4 billion in proceeds. Marcum, the leader in Q1, came in second with 28—all of which were special-purpose acquisition companies (SPACs). Deloitte, which led by a mile in IPOs audited with the most total proceeds (nearly $39.9 billion), came in third with 24.
Here’s an IPO auditor market share scorecard for Q2, courtesy of Audit Analytics:
Of the 181 IPOs in US markets in Q2, 60 were SPACs and three were direct listings. If you removed those 60 SPACs from the equation, Marcum and Withum would drop out of the leaderboard, as all of their IPO audit clients in the second quarter were blank check companies.
In non-SPAC IPOs, EY remains on top with 31, followed by Deloitte with 24, PwC with 21, KPMG with 14, and all other firms with 31.
Q2 2021 IPOs: Auditor Market Share and Stats [Audit Analytics]