The January IPO Freeze

Here we go again! Unfortunately.

After 2014’s enormous year, 2015’s new issuance market began rather slowly, and despite some promising signs, the year was unable to capitalize on some Spring momentum and the market ultimately sputtered to a close. The trend continues, as January 2016’s new issuance market is also off to a slow start.

No new issuers came to market in the first week of the year, and two companies, both from the Healthcare sector, actually withdrew or postponed their market debuts: 21st Century Oncology Holdings, Inc. withdrew its $100.0M IPO on January 5th  for reasons unknown, and SurgiQuest, Inc.  withdrew its IPO this week as all the company’s shares outstanding in common stock were acquired by Conmed Corporation on January 4th.

A slow January is actually pretty typical. The past three years (2013, 2014, 2015) brought only one market debut during the first week of the year, with GlycoMemetics, Inc.’s IPO on January 9th, 2014 being the sole debut. So it’s not as if this January doesn’t have company.

Providing a glimmer of hope is the news that 11 companies filed for IPOs this week seeking to raise a combined $995.3M in proceeds, with 10 of the issuers coming from the Healthcare sector and one from the Consumer Services sector. The popular Healthcare sector looks to continue to build on its busy 2015, which had 64 companies debut generating over $7.5B in proceeds (and saw over 100 debuts in 2014).

Additionally, Shimmick Construction Company, Inc. from the Industrials sector is the only IPO currently expected to price this week and seeks to generate $75.0M in proceeds. The Industrials space welcomed nine market debuts in each of 2014 and 2015.

We discussed the current backlog last week. Here’s hoping that starts bearing fruit soon.