The June Boom

A few weeks ago, just as Summer arrived on the calendar, the new issuance market found itself catching fire. At the time, we wrote about Fitbit’s launch, and we also discussed the expected tidal wave of IPOs crashing to shore during the last two full weeks of June. Such an output would have trumped last fall’s 20 IPO stretch between September 29th and October 10th and potentially kick-started what has thus far been a slow 2014.

Unfortunately, it turns out June’s late fireworks fell a bit short… but only by one.

20 of the expected 21 IPOs landed over the past two weeks, and after last night’s (June 30) three late additions (CNX Coal, $75.0M; Teladoc, $156.8M; Unique Fabricating, $22.3M), June 2015 now ranks as the fifth biggest month since 2001, with 30 IPOs hitting the market for total proceeds of $6.6B. By way of comparison, June 2014 also came in with 30 IPOs, for almost $9B, in the midst of a record year.

Keeping up their end of the bargain, as usual, Healthcare led the pack with 11 of the month’s 30 debuts (falling above the sector’s yearly 1.6 per week average), and this time their total proceeds came in on top as well. Despite its biggest deal only landing as the month’s sixth largest (Axovant Offerings, $362M), the sheer amount of Healthcare offerings were enough to bring in $1.4B and stave off Industrials’ second-place $1.2B in proceeds (with it earned via only three IPOs).

It is yet to be seen if the second half of 2015 will continue this upward trend; as of right now, the six-month backlog has only about 60 names – last year at this time, there were 100. It’s not entirely fair to keep comparing this year to 2014’s record-breaking output, but at least June matched up pretty well. It was a promising finish to the first half of what has been a rocky year.

We may not have a real idea of how the rest of 2015 will shake out until September comes around. The next two months typically adhere to traditional patterns, as everyone rushes to get their deals to market in July before the August slowdown.