2016 IPO Outlook Brightens After a Slow and Disappointing 2015

Fitbit (FIT) and GoDaddy (GDDY) were among the bright spots in an otherwise disappointing year for initial public offerings.
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Fitbit (FIT) and GoDaddy (GDDY) were among the bright spots in an otherwise disappointing year for initial public offerings, according to IPO research firm Renaissance Capital. In 2015, just $30 billion was raised from IPOs, a six-year low. ‘It was certainly a disappointment, but we were up against a really big year in 2014,’ said Kathleen Smith, a principal at Renaissance Capital, which manages IPO exchange traded funds. Technology IPO activity was at its lowest level since 2009, according to the data, with only twenty-three tech companies going public in 2015, raising just $4.2 billion. That represents an 87 percent drop in proceeds from the prior year. The slide in oil prices also resulted in a sharp drop in energy offerings, but healthcare was a standout sector. In 2015, 46 percent of the IPOs were in healthcare, with biotech particularly strong. ‘The amount of issuance in biotech in 2015 was unprecedented. We don’t expect that to continue,’ said Smith, who explained that investors have become more risk adverse. TheStreet's Rhonda Scaffler reports from New York.