January IPO Recap

Not to bring up old stuff, but 2016’s IPO market did not start off strong.

The first IPO of 2016 did not arrive until the first week of February, and last year’s entire first quarter saw a mere six debuts price for total proceeds of $582.0M. We’re only one month in and already 2017 has trumped 2016’s first three months. So far so good.

January saw nine IPOs hit the market for $4.3B in total proceeds. Three came from Healthcare (as opposed to the first quarter of 2016, when all six IPOs were from the Ipreo Blog’s most talked about sector), including Jounce Therapeutics, Inc. ($101.8M), which represented the first healthcare IPO to price above its filing range since iRhythm Technologies, Inc.’s November 2016 debut.

The largest IPO of the month came from Invitation Homes Inc. which generated $1.5B, trumping April 2016’s MGM Growth Properties LLC. The second-largest IPO of the month was by JELD-WEN Holding, Inc., which collected $661.3M in its debut for the Industrials sector.

January’s robust performance has whetted the appetite for a strong year in IPOs, but can we expect this resurgence to continue? Let’s look at the backlog, which, despite 2016’s meager first quarter, suffers in comparison to the backlog at this time last year.

Right now, the 6-month IPO backlog stands at 20 issuers aiming to raise a combined $2.7B which, optimism notwithstanding, is a steep drop-off from 2016’s concurrent collection of 69 issuers for $15.1B in proceeds. Industrials, Tech/Telecom, and Energy all have three issuers in the pipeline, with the Consumer Goods sector taking the lead in terms of proceeds with $500.0M from one issuer, JBS Foods International B.V., the largest IPO in the current backlog.

So January started the year off strong, but that’s no guarantee that this momentum will carry over as we venture deeper into the new year.

Read the entire January IPO Brief.