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2015 in New Issuance

Typically, at the start of each month, we recap the previous month’s IPO market. Being that it’s January (Happy New Year!), both due to simple timing and the fact that December didn’t really have a lot going on, today’s post will focus on recapping 2015’s new issuance activity on the whole.

Bringing only two debuts to the market for combined proceeds of $606.3M, December was the slowest month of the year for the new issuance market, which makes it a fitting cap to what was the slowest year for the new issuance market since 2012. Adding insult to injury, 2015 was the smallest year in terms of proceeds since 2009, when 60 deals priced for $27.0B.

149 IPOs hit the scene in 2015, after 263 the year before. In a year that saw more than one hundred fewer IPOs than the year prior, no sector was exempt from shrinkage, not even Healthcare, which 64 debuts paled in comparison to the 101 brought to market last year. But a shrinking tide founders all boats, so those 64 were enough to keep the sector in pole position, with Technology finishing as the runner-up with 24.

The Tech sector also boasted First Data Corp.’s debut, the year’s largest IPO, generating $2.8B from its October debut – a far cry from 2014’s Alibaba. The Energy sector brought the second and third largest deals to market in Tallgrass Energy GP, LP ($1.4B) and Columbia Pipeline Partners LP ($1.2B), even as their total output shrank from 26 to nine.

Elsewhere, literally, 2015 welcomed 21 non-U.S. domiciled issuers to the U.S. markets, decreasing from the 40 international debuts in 2014. Of these offerings, 19.0% hailed from China, while 14.3% came from the U.S.’s northern neighbor, Canada. By sector, Healthcare and Technology accounted for 17 of the 21 IPOs, issuing eleven and six debuts, respectively. China brought half of the six Technology IPOs to the market combining for $243.7M in total proceeds. While Healthcare and Technology dominated foreign-domiciled IPOs, the largest came from Italy’s Ferrari N.V. of the Consumer Goods space, which raced to $982.4M in its market debut.

Finally, the current IPO backlog rose marginally from 61 deals in November to 64 in December, but left the total expected proceeds relatively unchanged from the prior month with a current tally of $8.8B.

2014’s record-breaking performance was always going to be a tough bar to clear, and expecting last year to match it was far-fetched. But we’d be lying if we weren’t a little disappointed in how much 2015’s numbers fell, despite the previous year’s heights.

How will 2016 fair?

Looking ahead, of the top filed deals, only two companies are hoping to raise $1.0B+ in proceeds: Albertsons Companies, Inc. ($1.6B) and Acelity Holdings, Inc. ($1.0B), and the current six-month pipeline has dipped from 70 issuers hoping to raise $9.1B. to 64 issuers hoping to raise $8.8B in total proceeds. Whether this roughly 3% dip is a sign of a further decline, the similar numbers speak to a similar output to come in 2016, or it’s simply too early to tell what the new year will bring, we don’t yet know.

But the Ipreo Blog will be sure to fill you in when we find out.

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