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Auditor Market Share in Micro-Cap IPOs (Jan-Feb 2025)

Analysis: Auditor Market Share in Micro-Cap IPOs (Jan-Feb 2025)

Today we examine key insights about auditor concentration and specialization patterns in the micro-cap IPO market during January-February 2025, with particular attention to SPAC versus traditional structures and domestic versus foreign issuers.

Leading Auditors by Listings Volume

WithumSmith+Brown, P.C. led the market with 11 listings, all of which were SPACs. The firm demonstrated a strong foreign issuer concentration with 73% (8 transactions) involving non-U.S. companies, while the remaining 27% (3 transactions) were domestic issuers. Their activity increased from January (4 transactions) to February (7 transactions).

WWC, P.C. supported 6 listings, focusing exclusively on traditional IPOs. The firm showed a preference for domestic issuers, which accounted for 67% (4 transactions) of their listings, with the remaining 33% (2 listings) involving foreign companies. WWC maintained consistent monthly volume with 3 listings in each month.

Marcum Asia CPAs LLP handled 4 listings with a clear preference for traditional IPOs, which represented 75% (3 listings) of their business, while SPACs accounted for the remaining 25% (1 listing). The firm maintained a balanced geographic distribution with 50% foreign and 50% domestic issuers, as well as consistent monthly distribution with 2 listings per month. 

Onestop Assurance PAC supported 3 listings, all of which were traditional IPOs for foreign issuers. Their activity was stronger in January with 2 listings, followed by 1 listing in February.

Audit Alliance LLP participated in 2 listings, showing a balanced portfolio with 50% SPAC and 50% traditional IPO structures. The firm also maintained a balanced geographic distribution with 50% foreign and 50% domestic issuers, with their listings evenly distributed across both months.

HTL International, LLC participated in 2 listings, exclusively supporting traditional IPOs for foreign issuers. Their transactions were evenly distributed with one in January and one in February.

TAAD, LLP handled 2 listings, both traditional IPOs with a balanced geographic mix of 50% foreign and 50% domestic issuers. Both listings occurred in January with no activity in February.

Market Structure Analysis 

The micro-cap market recorded 44 IPO listings during the first two months of 2025. SPAC structures were utilized in 36% of these transactions (16 in total), while traditional IPOs accounted for the rest (28 listings). 52.3% of issuers (23 transactions) were foreign entities seeking access to U.S. capital markets. 

WithumSmith+Brown demonstrated significant market concentration in the SPAC segment, handling 69% of all SPAC transactions in this market category. Clear auditor specialization patterns emerged across the dataset. Several firms exclusively served traditional IPOs, including WWC, Onestop, HTL, and TAAD. Among these, Onestop and HTL exclusively supported foreign issuers. Analysis of transaction patterns indicates that foreign issuers showed a higher propensity for traditional structures over SPACs, with 14 foreign companies using traditional IPO structures compared to 9 opting for SPACs.

The notable absence of Big Four accounting firms in this market segment suggests strategic positioning by mid-tier firms to establish competitive advantage in the micro-cap space, where specialized expertise and potentially different fee structures may create more advantageous client relationships.

Micro-Cap IPO Auditor League Tables (Jan-Feb 2025)

TABLE 1: AUDITOR RANKING BY TOTAL MICRO-CAP IPO LISTINGS

TABLE 2: AUDITOR RANKING BY TRADITIONAL MICRO-CAP IPO LISTINGS

TABLE 3: AUDITOR RANKING BY SPAC MICRO-CAP IPO LISTINGS

MARKET SHARE ANALYSIS

Total Micro/Nano IPO Listings: 44
Traditional IPOs: 28 (64%)
SPAC IPOs: 16 (36%)

Market Share of Top 3 Auditors (Total Listings):

• WithumSmith+Brown, P.C: 25%
• WWC, P.C: 14%
• Marcum Asia CPAs LLP: 9%

Market Share of Top 3 Auditors (Traditional IPOs):

• WWC, P.C: 21%
• Marcum Asia CPAs LLP: 11%
• Onestop Assurance PAC: 11%

Market Share of Top 3 Auditors (SPAC IPOs):

• WithumSmith+Brown, P.C: 69%
• Audit Alliance LLP: 6%
• Marcum Asia CPAs LLP: 6%