August IPO Recap

We knew it was coming.

Every year, August’s end of summer vacation surge results in something of a swoon in the IPO market. August 2017 was no different.

As we enter the first full week of September, we are in the midst of an IPO drought. No debuts are scheduled to land this week, which would make it the fourth straight week that no IPOs priced, the first such streak since late December 2016/early January 2017.

August hasn’t been totally dead. Four IPOs priced early in the month for total proceeds of $785.1, down from last August’s six IPOs for $1.0B and the lowest monthly deal count since November 2016, which brought in two IPOs or $348.7M in total proceeds. The largest IPO came from Venator Materials PLC, a U.K. based Basic Materials company that raised $522.1M and becoming the first Basic Materials company from the U.K. since 2001.

All four of the companies that priced during August came from different sectors, as the Energy, Consumer Services, Basic Materials, and Healthcare sectors all added one deal to their yearly total. Healthcare, thanks to its late spring/early summer surge, remains atop the deal count list with 19, five down from this time last year, while the proceeds from the Technology sector’s 14 IPOs amount to the highest proceeds of 2017 so far, its $8.1B in proceeds year-to-date easily besting Energy’s proceeds of $3.7B.

Now that we have entered September and Labor Day has passed, the summer is unofficially over, and the IPO market is waiting for the summer slowdown to end.

Here’s a look ahead at the current six-month backlog, via the Ipreo Capital Markets August US IPO Brief:

The current 6-month backlog of 30 total IPOs, seeking combined proceeds of $6.2B, is comprised of 22 domestic IPOs and eight international IPOs. The 22 US IPOs are expected to raise $4.3B, and the five international IPOs are seeking to raise $1.9B. The 30 expected IPOs represent a relative increase from the prior year, when there were 25 expected deals scheduled to generate $4.7B. There are three deals seeking to raise $500.0M or more, matching the three deals seeking to raise $500.0M or more one year ago. Looking at aggregate expected proceeds by sector, the Consumer Services sector is still on top, as it expects to generate $3.2B, rising 433.3% from the $600M expected last year. When comparing 2017 and 2016 year-to-date deal count, the Energy sector has had the greatest improvement, as it has priced seven IPOs this year compared to last year’s results of zero.

For a deeper dive into all of the quarter’s activity, including robust activity and performance statistics for US-Listed IPOs, click through to our August IPO Recap 2017.