January IPO Recap

After December’s strong showing, the capper to 2017’s bounce-back year, the pressure was on January to keep up the momentum in the IPO market. How did it fare?

The last quarter of 2017 brought in 48 IPOs, bringing the year to a strong close and generating high hopes for 2018. So far, those hopes have yet to be dashed, as January opened the year with 17 IPOs for $9.6B in proceeds, nearly doubling the 9 debuts (for $4.6B) that landed in the first month of 2017, with eight of them coming last week alone. Those proceeds were the most in any month since September 2014 ($30.8B), which included Alibaba’s record-breaking $25.0B deal.

The month’s largest deal came from the Technology sector, as Brazil’s PagSeguro Digital Ltd. outshined all other IPOs by a wide margin, generating proceeds of $2.3B. It was Brazil’s second-largest IPO ever, after Banco Santander which debuted at $7.5B in October 2009. Interestingly, three of the 10 largest IPOs in the current 6-month backlog hail from the Latin American countries of Peru, Panama and Argentina.

Not to be outdone, at least in terms of deal count, Healthcare led the way with six IPOs. The sector also had a somewhat uncharacteristically strong showing proceeds-wise, with those six debuts bringing in $608.7M, which stands as a 102.8% increase in proceeds from last January’s haul.

Does January’s solid performance portend more good news for the IPO market for the rest of the year? Let’s take a look at what’s to come, via the IPOs in the backlog:

The current 6 month IPO backlog stands at 23 issuers seeking to generate $4.1B in proceeds, an increase in terms of deal count when compared to the prior-year period’s results of 21 IPOs, but a marked dip in terms of proceeds from last year’s $5.6B. Looking at individual sectors, the IPOs in the backlog are evenly spread, as each of the largest six deals in the backlog hail from different sectors. The largest deal comes from REIT issuer Workspace Property Trust, which expects to generate $526.5M.

Read the full Ipreo IPO Brief January 2018