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How Many Companies IPO Per Year? 2023 Trends

By Rebecca Lake · October 19, 2023 · 4 minute read

We’re here to help! First and foremost, SoFi Learn strives to be a beneficial resource to you as you navigate your financial journey. Read more We develop content that covers a variety of financial topics. Sometimes, that content may include information about products, features, or services that SoFi does not provide. We aim to break down complicated concepts, loop you in on the latest trends, and keep you up-to-date on the stuff you can use to help get your money right. Read less

How Many Companies IPO Per Year? 2023 Trends

An initial public offering, or IPO, represents the first time a company makes its shares available for trade on a public stock exchange. The number of IPOs per year varies, depending on market conditions and the ease with which companies can raise capital via other methods.

Private companies can use IPOs to raise capital and fuel future growth, and hundreds of companies go public most years, presenting an opportunity for interested investors.

IPO statistics can offer some perspective on how frequently companies decide to go public and which sectors tend to see the most significant launches.

Number of IPOs by Year

A look at IPO history shows that the number of initial public offerings fluctuates significantly by year and decade. Since 2000, there have been some 6,013 IPOs. Here’s a look at IPO filings by year for that time frame:

Year

Number of IPOs

2000 397
2001 141
2002 183
2003 148
2004 314
2005 286
2006 220
2007 268
2008 62
2009 79
2010 190
2011 171
2012 157
2013 251
2014 304
2015 206
2016 133
2017 217
2018 255
2019 232
2020 480
2021 1,035
2022 181
2023* 79

*As of June 30, 2023.

The number of IPOs in any given year tend to follow movements in the economic cycle. In 2008, for example, there were just 62 IPOs as the economy and stock market were in the midst of a historic downturn. IPO activity didn’t pick up the pace again until 2010, once the Great Recession had ended.


💡 Quick Tip: Access to IPO shares before they trade on public exchanges has usually been available only to large institutional investors. That’s changing now, and some brokerages offer pre-listing IPO investing to qualified investors.

Previous Year IPOs

Companies were more likely to go public in the 1980s and 1990s than in recent years. Between 1980 and 2000, an average of 311 firms went public each year.

IPO activity spiked in the mid-90s as entrepreneurs sought to join the growing dot-com bubble.

Meanwhile, an average of 187 firms went public annually between 2001 and 2011. In recent years, larger, more established companies are more likely to go public than smaller private firms.

However, a record number of companies — 1,035 — went public in 2021. Some analysts point to loose monetary policy and a booming stock market as reasons so many companies went public during the year.

Additionally, one of the factors driving IPOs during 2020 and 2021 was an increase in IPOs for special-purpose acquisition corporations (SPACs). SPACs are essentially holding companies that go public with the sole purpose of acquiring another company.

Recommended: What Is an IPO Pop?

Overview of IPOs in 2022 – 2023

Following the boom in IPOs in 2021, the number of companies that went public during 2022 and 2023 dramatically decreased, due to several factors, including tight monetary policy to combat inflation, and a dramatic decline in the stock market.

As of June 30, 2023, there have been only 79 U.S. market IPOs so far — a 37% drop compared with the number of IPOs in 2022 by this time. There were 125 IPOs by June 30, 2022.

Of the 79 that debuted this year, about 46.8% — 37 companies — showed negative returns as of June 30, 2023, and 42 showed positive returns (bearing in mind that 11 companies IPO’d in June, and their prices may fluctuate in the coming quarters).

That said, the IPO proceeds in Q1 of 2022 similar to Q1 of 2023: $2.5 billion and $2.4 billion respectively. But company valuations were higher in 2022, and the 24 IPOs in Q1 generated almost as much in proceeds that year as the 33 IPOs in Q1 of 2023.

Evaluating the performance of stocks after a company goes public can give you an idea of how successful IPOs tend to be overall. However, it’s important to remember that it’s impossible to predict whether a stock will boom or bust in the months and years after it starts trading.

IPO stocks are considered highly volatile, high-risk investments, and while some companies may present an opportunity for growth, there are no guarantees. Like investing in any other type of stock, it’s essential for investors to do their due diligence.


💡 Quick Tip: Look for an online brokerage with low trading commissions as well as no account minimum. Higher fees can cut into investment returns over time.

The Takeaway

Looking at IPO statistics and IPOs by year can help you track trends and understand just how often companies go public, and why some years have more IPOs than others.

While the low interest rates and rising stock market of 2021 helped create a record year for 1,035 new companies, the climate now has changed: rates are higher, there’s more market volatility, and the slowing number of IPOs reflects that.

If you’re interested in adding IPOs to your portfolio, it’s also important to know which sectors tend to have the most and least IPO activity.

Whether you’re curious about exploring IPOs, or interested in traditional stocks and exchange-traded funds (ETFs), you can get started by opening an account on the SoFi Invest® brokerage platform. On SoFi Invest, eligible SoFi members have the opportunity to trade IPO shares, and there are no account minimums for those with an Active Investing account. As with any investment, it's wise to consider your overall portfolio goals in order to assess whether IPO investing is right for you, given the risks of volatility and loss.

Invest with as little as $5 with a SoFi Active Investing account.


Photo credit: iStock/Inside Creative House

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Investing in an Initial Public Offering (IPO) involves substantial risk, including the risk of loss. Further, there are a variety of risk factors to consider when investing in an IPO, including but not limited to, unproven management, significant debt, and lack of operating history. For a comprehensive discussion of these risks please refer to SoFi Securities’ IPO Risk Disclosure Statement. IPOs offered through SoFi Securities are not a recommendation and investors should carefully read the offering prospectus to determine whether an offering is consistent with their investment objectives, risk tolerance, and financial situation.

New offerings generally have high demand and there are a limited number of shares available for distribution to participants. Many customers may not be allocated shares and share allocations may be significantly smaller than the shares requested in the customer’s initial offer (Indication of Interest). For SoFi’s allocation procedures please refer to IPO Allocation Procedures.


Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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