August is traditionally a down month for the IPO market, things slowing down as people enjoy the last month of summer and vacations are jammed into the final few weeks before school starts again.
Since 2010, the highest number of IPOs to price during the last 3 weeks of August, when vacations are in full swing, was during 2013, which had four debuts.
This year wasn’t much different, with August bringing in a mere 8 IPOs for $1.7B in proceeds, after July’s decent 20 IPOs for a $4.6B haul. But things weren’t slow enough to claim the mantle of “slowest month of the year” from February, which saw 7 IPOs for total proceeds of $1.4B. August 2018 also easily outperformed last year’s last month of summer, doubling August 2017’s 4 IPOs for 785.1M in proceeds. (This time last year, no IPOs came to market between the 8/10/17-9/13/17 period.)
The largest IPO for the month hailed from London, U.K as Cushman & Wakefield plc raised $879.7 million in overall proceeds out of the Real Estate sector. Aridis Pharamceuticals, Inc. was the second healthcare IPO to come to market in August, bringing 2018’s Healthcare IPO count now sits at 43 (more than doubling the 19 Healthcare deals seen at this time last year).
The current backlog stands at 38 IPOs, an increase from both the 22 IPOs reported last month as well as the 28 IPOs reported in the analogous period the prior-year. The International IPO backlog currently sits at 15, up from the six IPOs that occurred in July and increasing from the eight IPOs found in the August 2017 backlog. Of note, the Energy and Consumer services sector have experienced the largest sector drop in backlog IPO count year-over-year for August with both of them losing three deals. The largest IPO currently in the backlog is NIO Inc. out of the Consumer Goods sector. The company is looking to raise $1,160M in proceeds.
Get all the details on the first quarter’s new issuance activity in the full August IPO Brief