December IPO Update

The end of the year is rapidly approaching. After our recent recap of November’s IPO activity — or lack thereof — we speculated that there likely wouldn’t be much more happening before we hit 2017. But it seems that December had a few stocking stuffers in store, just before the holidays descend.

Two IPOs priced last week for combined proceeds of $1.3B, including Athene Holding, Ltd, which was responsible for the bulk of those proceeds with the second-largest IPO year-to date. The Financial IPO came in at $1.2B, just behind October’s ZTO Express (Cayman) Inc. IPO which landed with 2016’s best $1.4B debut. Athene Holding is the largest Financial IPO of the year, and since 2014’s Citizens Financial Group Inc’s $3.5B offering, as well as also the largest Insurance IPO since ING U.S. Inc’s (now Voya Financial, Inc.) $1.5B opening way back in May 2013.

Debuting with a little less fanfare was Ichor Holdings, Ltd ($52.9M), which was the 18th Technology IPO of the year, lagging behind 2015’s 24 IPOs from that sector. 2016’s Tech proceeds also pale significantly compared to last year’s, with the current total proceeds of $2,882.67M falling far short of 2015’s final tally of $7117.28M.

This week, two more IPOs made their market debuts, with Wild Horse Resources Development Corp landing on Tuesday for $412.5M, the second-largest Energy IPO of the year so far, behind Extraction Oil & Gas Inc’s $663.0M offering, and Trivago N.V. bringing in $247.2M. Trivago marks the second-largest German-domiciled IPO since at least 2001, behind Qimonda AG’s August 2006 offering for $627.9M. It’s also the third-largest Consumer Services IPO this year, following U.S Foods Holding Corp ($1.2B) and Red Rock Resorts ($579.3M).

December could have had even more debuts, if five deals – two from Tech, three from Healthcare — not been withdrawn. Acelity Holdings, Inc. ($1.0B), the aforementioned Healthcare IPO, InnoLight Technology Corp ($100.0M) and Congatec Holding AG ($60.0M), both from the Tech sector, were pulled from the docket. But at the same time, the month has made a decent showing, or, at least, a decent last gasp before 2017 hits. We can’t exactly call it momentum, but it’s not not momentum!

In January we’ll be back with a recap of all of 2016’s IPO activity, and a bit of look ahead to 2017, which will hopefully build on the little bit of not-not-momentum the last month of the year has generated.