Royalty Pharma skyrockets 65% in its trading debut as investors flock to the largest US IPO of the year

• Royalty Pharma surged as much as 65% in its first day of trading Tuesday.
• The $2.18 billion initial public offering is the largest US IPO of the year, slightly exceeding Warner Music Group's recent $1.9 billion offering.
• It's also the second-largest pharmaceutical IPO ever, coming in just below Zoetis Inc's 2013 $2.2 billion IPO.
• Read more on Business Insider.

Shares of Royalty Pharma surged as much as 65% on Tuesday in its first day of public trading after completing the largest US IPO of the year. The company priced its IPO at $28 a share, and climbed to $46.27 at intraday highs.

The pharmaceutical company priced its IPO late Monday at the top end of its range, selling 77.7 million shares to raise $2.18 billion. The size of Royalty Pharma's IPO surpassed Warner Music Group's $1.9 billion recent deal, making it the largest US IPO so far this year.

In addition, Royalty Pharma's IPO is the second-largest pharmaceutical public listing ever, just behind Zoetis Inc's $2.2 billion IPO in 2013.

The IPO market has come roaring back in recent weeks after being hit hard by the coronavirus pandemic. Since the market bottom on March 23, the Renaissance IPO ETF — which provides exposure to recently public companies — has skyrocketed 69%. That's nearly 29 percentage points better than the benchmark S&P 500 over the same period.

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