After 2018 ended a strong year on a down note, all eyes were on January’s IPO market. Would it continue the fourth quarter’s downturn, or would it bounce back and portend a strong performance for 2019?
We’re sorry to say it’s the latter. Definitely the latter.
January 2019 saw just one IPO hit the market. One. Thanks to a variety of factors, including less-than-favorable market conditions that kept issuers at bay, last month registers as the fourth worst January on record (since 2001), edging by 2003, 2009, and 2006, all of which laid goose eggs. So it’s got that going for it!
The lone IPO was from New Fortress Energy LLC, which originally filed in early November, right before the holidays slowed things down, the market volatility shook things up, and the longest partial government shutdown occurred. New Fortress managed to push their offering through, though it saw its expected proceeds shrink from $399.6M at the date of the filing to just $280.0M when it finally debuted.
The good news is that the backlog has upped its game as companies are assuming things will rebound and market conditions will improve. There are currently 26 U.S. IPOs on deck for the next six months, and another 6 international offerings, which is 5 more international deals than 2018 managed. The downside is the size of these deals, as only three of the total 32 deals in the backlog are slated to price above $300.0M, and the average deal size is a mere $121.5M, a far cry from the $380.2M average at this time last year.
Get all the details on all of January’s IPO activity in the January 2019 IPO Brief