March IPO Recap

After February went out like a lamb, slowing the momentum the IPO market had been riding since the end of 2017, March came in like a lion, reinvigorating things as the quarter came to a close.

The third month of the year couldn’t quite match January’s 17 debuts, but the 12 IPOs that launched in March nearly doubled February’s total of 7. Proceeds wise, March’s 12 IPOs brought in $4.8B – more than tripling the prior month’s $1.4B. That total was largely due to China, which debuted 5 IPOs in March.

Those 5 debuts are the most China has brought to a U.S. exchange in one month since May of 2011 (also 5) and brings 2018’s current total to 6, well outpacing China’s 2017, when the country didn’t reach their 6th debut until the end of September. (2016 saw a total of five Chinese IPOs.)

China’s most notable IPO was also its most recent, iQIYI, Inc., which at $2.25B is the country’s biggest IPO since 2014’s Alibaba and the second-largest IPO of 2018 (behind Brazil’s PagSeguro Digital Ltd.’s $2.25B debut in January). 3 IPOs priced out of the city of Shanghai during March, the highest number of Chinese IPOs to price on a U.S. exchange out of that city in one month since 2001.

iQIYI was the fourth Tech IPO of the month for a total of $3.8B – matching Healthcare’s debuts (though greatly exceeding its $432.8M in proceeds) and exceeding Consumer Services’ 3 IPOs ($471.6M) – which topped off a really solid quarter for the Technology sector (which we’ll be back to discuss in next week’s Quarterly Recap).

Which sector has the brightest backlog? Let’s take a look:

The current 6 month IPO backlog stands at 23 issuers seeking to generate $3.7B in proceeds, falling in terms of deal count and proceeds when compared to the prior-year period’s backlog of 31 IPOs for $7.1B. Energy based issuer Vine Resources Inc. and Basic Materials company IPSCO Tubulars Inc. are both anticipating raising $500.0M with tier deals, making them the largest issuers in the backlog.

Read the month’s full recap in the Ipreo IPO Brief March 2018