July IPO Recap

As we discussed in last month’s recap of the second quarter, things were starting to pick up a bit in the IPO market. The first half of the year was rather sluggish, especially compared with recent history, but there were some indications that the second half of the year might rebound a bit. Of course, things can change in a hurry. Just ask the British.

Fortunately, they haven’t changed yet. July kicked off the second half of 2016 with 10 IPOs for total proceeds of $2.3B. Will that sustain? Well, August isn’t usually the month for major action, and the backlog for the rest of the year shows a mere 22 issuers seeking to raise $2.6B, a stark contrast from last year’s 58 for $15.5B. So probably not.

But let’s get back to the good news.

The fourth largest tech IPO since 2014 – and July’s largest debut, proceeds-wise – landed in the form of Japan domiciled Line Corporation, which generated $722.5M in proceeds. TPI Composites, Inc. launched the year’s first first Energy IPO, bringing in $68.8M in proceeds. Healthcare weighed in, as usual, this month with four IPOs, including Patheon N.V.’s $625.0M offering. Patheon is the largest debut from the sector since Inovalon Holdings, Inc.’s debut in March 2015 and the fourth largest Healthcare IPO since 2014.

Healthcare also leads the aforementioned backlog, with five deals in the pipeline (projecting $395.0M in proceeds), while Financials ($763.9M) and Consumer Services ($480.0M) are close behind with four deals each. August is typically a slow month – even this will try to squeeze in a little vacation – but hopefully the recent momentum in the IPO market will continue.

The Ipreo Blog will be watching as August progresses, and, as always, we’ll be around to keep you up-to-date.

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