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No year since the tech bubble burst has seen more IPOs than 2013.
Hilton (HLT) was one of eight initial public offerings to debut on U.S. exchanges in the last two days. That brought the total number of IPOs this year to 218 – the most since 2000. The 218 IPOs edged out the 217 companies that went public in 2004 and the 213 that debuted in 2007.
Proceeds raised by this year’s have now exceeded $50 billion, also a first since 2000.
Hilton raised a whopping $2.4 billion in its debut. That makes it the largest IPO for a lodging company in history. Consider Hilton Worldwide is the largest hotel operator in the world, its huge payday is no surprise. So far, the stock is up 9% in its first day of public trading.
The average return among 2013 IPOs has been 32%. If it holds, that would be the second-best annual return for IPOs since at least 2001 (see chart below).
Put in context, this year’s IPO returns and pricing numbers look even more impressive. Just two years ago, IPO investors actually lost money (10%, to be exact). And only 125 companies went public. Furthermore, this year’s $53.5 billion in IPO proceeds is a 47% improvement from the $36.3 billion raised in 2011.
And the year isn’t over yet. At least four more companies are lined up in the IPO hopper, according to the website Renaissance Capital. One of them is AMC Entertainment, the second-largest movie theater operator in the U.S. If those IPOs price in the next two weeks, the proceeds would only add to this year’s massive haul.
A crushing blow to Honda and Toyota
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