With 147 companies already going public this year, the U.S. market is on pace to see more IPOs in 2014 than any year since the dot-com boom of 2000 when 406 companies went public.
In fact, 2014 has seen more IPOs in six months than 2008, 2009, 2011, and 2012 saw all year.
Last year, investors got a glimpse of the hot IPO market when 222 companies when public. But through the first half of the year, 2014 has seen a 60% increase in IPOs compared to 2013. Through June, 215 IPOs have been filed, which is up 92% from 2013.
Not only has the number of IPOs increased dramatically this year, the amount of money raised by IPOs is way up too. Through June, $31.5 billion was raised in initial public offerings. According to IPO investment firm Renaissance Capital, that's up nearly 53% from 2013.
For the most part, companies that have gone public this year have done well for early investors. Newly public stocks have averaged a gain of 14% on their first day and 20.4% overall in 2014.
Some of this year's biggest winners so far have been Zoes Kitchen Inc. (NYSE: ZOES) with a 129% return, Alder Biopharmaceuticals Inc. (Nasdaq: ALDR) with a 101% return, and Celladon Corp. (Nasdaq: CLDN) with a 100% return since hitting the market.
Most recently, action-camera company GoPro Inc. (Nasdaq: GPRO) has hosted one of the most exciting IPOs of the year. After pricing shares at the high end of its range, GPRO shares have surged as high as 108% from its offer price.
"As the recent GoPro deal underscores, the IPO market is white-hot right now," Money Morning's Executive Editor Bill Patalon said. "A brand-new report from Renaissance Capital says that IPO proceeds were up 42.4% in the second quarter on a year-over-year basis. Global IPO proceeds are up by the same amount year to date."
And the pace of the IPO market seems to be picking up as the year goes on. June 2014 was the biggest month for IPOs in the last decade, with 32 companies hitting the market. The fourth week of June alone saw 19 companies hold IPOs.
While many companies are riding the momentum of the "white hot" IPO market, some analysts are wondering if we're reaching bubble territory. Patalon addressed this question and broke down what investors can do to profit from 2014's IPO-heavy environment…