April IPO Recap

The month of April finally saw 2016’s IPO market emerging from the doldrums. We’ve still got a long way to go, but after a first quarter that saw a total of six debuts, April’s seven IPOs was certainly a step in the right direction.

Compared to last year, April saw eight fewer deals, but, thanks to MGM Growth Properties LLC’s debut, the largest IPO of the year thus far, bringing in $1.2B to the REIT sector, proceeds have only dropped 11.5%. It was also among the month’s crew of debuts that didn’t emerge from Healthcare, with debuts from Consumer Services, Financials, and Technology joining MGM Growth’s REIT in finally getting on the board.

When we look ahead, in the hopes that this month’s welcome burst of IPOs is a sign of things to come, the numbers pale in comparison to last year. But that doesn’t mean there are no signs of life. In fact, eight IPOs are expected over the next two weeks.

For the next six months, there are currently 34 issuers in the backlog, looking to raise $2.9B (compared to 2015’s 57 issuers looking to raise $9.4B). As always, Healthcare’s 17 deals in the backlog lead the pack, with the Consumer Services four deals trailing by a wide margin.

Regardless of which sector sees the most action, the second quarter of 2016 is already an improvement over the first. Hopefully things will continue to heat up as we head into the summer months.

Read the entire April IPO Brief