April IPO Recap

As we discussed last month, the first quarter of 2018 was a bit a roller coaster ride for the IPO market.

January rode 2017’s late momentum… and then February threw cold water on it. March reinvigorated things with a solid slate of debuts, nearly doubling February’s IPO count and more than tripling the amount of proceeds… and then April slowed things down again.

April launched just 10 debuts for $3.2B, a far cry from last April’s 17 IPO and the second lowest intake of the year (February had 7 for $1.4B), the first time a 2018 month dropped off its 2017 equivalent in both deal count and proceeds. By more immediate contrast, March saw 12 IPOs hit the market for $5.0B, including five from China.

April saw six Tech debuts from the tech sector, including four landing during the month’s last full week. The late surge was enough to put Tech atop all sectors for the second month in a row (financials was the runner-up with just two debuts) and helped it overtake Healthcare (12) in the year-to-date deal count.

Tech also delivered the month’s three biggest IPOs, headed by DocuSign, Inc., which raked in $723.7M in proceeds. (DocuSign also has the highest offer price of any IPO this year, besting Level One Bancorp, Inc.’s $28.00 per share offer price on April 19th.)

Does the Tech sector also have the brightest backlog? It continues to do battle with Healthcare, which has already yielded 2 IPOs this week, but how do things look further down the line? Let’s take a look:

The current 6 month IPO backlog stands at 29 issuers seeking to generate $7.9B in proceeds, falling in terms of deal count and proceeds when compared to the prior-year period’s backlog of 33 IPOs for $8.4B. AXA Equitable Holdings, Inc., from the Financials sector, is expected to generate $3.5B in proceeds, which is approximately seven times larger than the next largest IPO in the backlog.

Read the month’s full recap in the Ipreo IPO Brief April 2018

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