Health Care and Life Science IPOs are Soaring. Should Your Company Climb Aboard?
The recent proliferation of initial public offerings (IPOs) by health care and biotechnology companies is sparking interest among leadership in similar organisations and causing them to wonder whether offering stock to the public to fuel future growth.
This path to expansion and business opportunities has been quite popular lately.
According to data compiled by S&P Global Market Intelligence, 112 global health care and life science (HLS) companies went public globally in the second quarter, more than doubling the number of IPOs in the same quarter in the previous year. The total valuation of these offerings was $28.8 billion — more than half of the combined offering sizes of IPOs in the entirety of 2020 — with the lion’s share of the group consisting of IPOs of health care services and biotechnology companies. Furthermore, the average offering value per IPO increased significantly over the past six years, from $1.44 billion in the second quarter of 2016 to $15.64 billion in the second quarter of 2021.
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