January 2016 was a historic month for the new issuance market. Unfortunately, it wasn’t for positive reasons.
For only the third time since 2001, the new issuance market remained dormant during the month of January. Not a single IPO came to market, despite the fact that there had been no shortage of IPOs expected to price in the first month of the year. The reason for the void? Large-scale global selloffs and volatile commodity markets kept the new issuance market largely at bay.
Several IPOs that were expected to hit the market in January never quite made it. 21st Century Oncology Holdings, Inc. withdrew its IPO, for which it initially filed in February of 2014 for $230.0M (it was later revised to $115.0M ) on the grounds of troubling market conditions, and postponed, as both Elevate Credit, Inc. ($86.0M) and AmeriQuest, Inc. ($84.9M) both postponed their IPOs last month.
As for the future, the current 6-month IPO backlog stands at 67 issuers looking to raise $9.9B, relatively similar to the year-ago period’s backlog of 64 issuers for $9.1B. Despite blanking in January, Healthcare is still looking to start the year off strong, with 30 issuers in the backlog, looking to raise a combined $3.3B. The typically robust sector is followed (distantly) by Consumer Services, which has a total of 13 deals for $3.2B. Of note, Albertson Companies, Inc. and Acelity Holdings, Inc. take the top spots in terms of proceeds, looking to rake in $1.6B and $1.0B, respectively.
We’ll see in March if things proceeded as planned, or if February extends the streak of weeks without a debut. The year to beat? 2003, when it wasn’t until the seventh full week of the year for an IPO to rear its head (Infinity Property and Casualty Corp for $199.9M). Here’s hoping 2016 doesn’t break that rather ignominious record.