Boutique Market Analysis (2020): For the third consecutive year, 2020 was the Year of Healthcare IPOs

For the third consecutive year, 2020 was the year of Healthcare IPOs. Here is my analysis (short report):While there were few massive IPOs in 2020, mostly in the Financial, Consumer Services, and Tech industries (e.g., Rocket, AirBnb, Lufax, Snowflake, and DoorDash), at least 101 Healthcare companies went public last year, constituting about 48% of all IPOs in all industries (Figure 1). For the third consecutive year, the best performing IPOs were in the Healthcare industry. The average return of all healthcare companies, which went public in 2020, was 96% (followed by Technology [71%] and Consumer Services [65%], respectively (Figure 2)). Eight out of the top 10 IPO performers were Healthcare companies (and 1 Consumer Services and 1 Financials). The total market cap of all companies that went public in 2020 in all industries was around $1.1 trillion at the end of the calendar year. While the total market cap of all Healthcare companies that had an IPO in 2020 was about $242 billion, as expected, the first place went to the Tech industry with an overall $328 billion market cap (Figure 3).

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