Falling Forward

It’s the middle of September. Fall is (almost) back, school is back, football is back… is the IPO market back?

The shortened holiday week brought a total only two IPOs to market, which is nothing to crow about. But two is a lot better than zero, which is what we saw in the first week of the month. In fact, in both 2013 and 2014, no IPOs came to market during the shortened post-Labor Day week. (Note: Labor fell on September 7th this year, compared to September 2nd and September 3rd in 2013 and 2014, respectively.)

The two IPOs amounted to total proceeds of $900.0 and marked the first IPOs to come to market since the second week of August, when five issuers came to market raising combined proceeds of $841.2M. The largest of last week’s deals was Double Eagle Acquisition Corporation, which generated $500.0M in proceeds, while Paceline Holdings Corp. generated $400.0M in its debut.

Three deals are expected to price this week. All three are from the Healthcare sector, and are seeking to raise a combined $296.7M. Penumbra, Inc. a medical equipment company out of Alameda, CA is leading the way with its potentially $100.7M debut. It will make the year’s 51st Healthcare IPO. Only three-and-a-half months left to catch last year!

Looking ahead, the current IPO backlog is led by Surgery Partners, Inc. seeking to raise $431.3M, followed by Landmark Apartment Trust, Inc. ($375.0M) and UTAC Holdings Ltd. ($350.0M).

So, after August’s late summer doldrums, is the IPO market back? Not yet. But it’s a start.