July was a mountain. August was a molehill.
Look, it was August. Everyone was tired, everyone was on vacation, everyone was sad the summer was ending. It’s just not the most energetic month on the calendar, and it’s no different in the world of Initial Public Offerings. You always expect a swoon. But you don’t necessarily expect a coma.
Last month proved to be the single slowest month in terms of new issuances since February 2003. That’s the slowest in more than 10 years! We just got finished telling you how strong July had been – it featured the strongest week in ten years – and now we’ve done an about-face. Why? Like I said: it’s August. This is not atypical. In fact, despite its 10 IPOs amounting to the slowest month in more than a decade, 10 IPOs has actually been the average for August since 2001. Also on trend? Healthcare’s pole position (4 IPOs, $309.9M).
Expect a bounce back in September, when everyone gets back to work. In past years, post-Labor Day numbers have traditionally returned to form, and in fact, last week already saw 18 new deals hit the market.
So don’t worry, summer may be over, but the new issuance market is still hot.
Read the full August IPO recap.