In terms of new issuances, July proved to be the strongest month of the year. Its 31 IPOs edged out June’s 30 and landed well above the 2014’s current average of 21. In fact, July’s output was so strong, not only did it contain the busiest week since 2004, it’s also one of only two months since 2001 in which at least 31 IPOs hit the market.
July’s largest deal was Synchrony Financial, which doubled as the biggest IPO of the year so far (although since hitting the market, it hasn’t been performing as well as expected, with the markets responding lukewarmly to the deal) and was the largest IPO since Facebook (when over-allotment isn’t taken into account). At $2.9B, Synchrony’s size was something of an exception in July, and in 2014 in general. Despite the large number of IPOs, the year’s deals have been relatively small, with only around 12% of them raising more than $300M in proceeds.
And yet the pipeline itself remains strong, with 58 U.S. IPOs and 17 international IPOs on the way. Helping stock that backlog is Healthcare, with 25 deals in the pipeline, which should keep the sector on top in terms of overall deal count – it accounted for just over half of July’s 31 deals with 16 and has been leading the way on new issuances, at least from a purely quantitative perspective, all year.