August IPO Recap

Surprise, surprise, August’s IPO market wasn’t exactly booming.

After a slightly promising July, which followed a slightly promising second quarter, we anticipated a slowdown in August. It is, after all, a popular vacation month. In 2015, August saw 8 IPOs (after July 2015’s 16), and this year, August saw 6 IPOs (after July’s 10). Like we said, the slide is expected. But at least it wasn’t quite as large as it could have been. Thanks, as usual, to Healthcare.

Healthcare debuted three IPOs – bringing the sector’s current annual total to 24, out of 2016’s 48 overall. Which, and bear with us here while we do the math, is exactly 50%. Also as usual, despite Healthcare’s frequent monthly deal-count dominance, it typically lags behind the other sectors when it comes to proceeds per deal.

As usual, it cedes the month’s largest debut to another sector. This time, it’s Financials, as First Hawaiian Inc. generated $557.8M, a total which is larger by itself than not just all three of Healthcare’s August debuts combined, but all five of August’s IPOs combined, which generated $462.8M. (It’s also the largest Financials IPO since Tekla World Healthcare Fund raked in $580.0M in June 2015.)

The backlog, as it stands right now, holds 23 issuers seeking to raise $2.2B, which, as we noted last month, is quite a drop from this time in 2015, when 64 issuers were primed to drum up $16.6B. And despite being responsible for half of 2016’s IPOs so far, Healthcare isn’t atop the backlog. Tech/Telecom ($526.3M) and Financials ($461.0M) lead the pack with five deals each, while Healthcare has to settle for a second-place tie with Consumer Goods, both of which have four IPOs pending.

Next month not only brings the onset of fall, but also represents the last chance for the generate some momentum before the third quarter closes. Hopefully September will bounce back.

For more information on August’s IPO activity, plus a recap of follow-on activity and industry highlights, read Ipreo’s full US Monthly US IPO Brief – August.