They say March comes in like a lion and goes out like a lamb. But if we’re judging by the performance of 2016’s new issuance market, March has been a lamb throughout the entire month, welcoming a mere two IPOs with only two days to go.
Syndax Pharmaceuticals kicked off the month with its $52.8M debut, but the next two saw no IPOs price, marking the seventh and eighth weeks this year that the new issuance market was stagnant. Over the last five years (2011-2015), there has been on average 11 weeks in the full year (excluding the final two weeks in December in which typically no IPOs price) that failed to produce an IPO, with the most coming from 2012 and 2011, each of which had 14 weeks without an IPO. 2016 is already more than halfway past that with only one quarter (nearly) closed.
We didn’t get shut out last week though, as Corvus Pharmaceuticals Inc. generated $70.5M in proceeds to become both the sixth debut of the year overall and the sixth debut from the healthcare sector. Additionally, as per the trend in 2016, two issuers withdrew their IPOs during the week, citing market conditions: Overseas Shipholding Group, Inc. of the Industrials space, which filed to raise $100.0M in proceeds (the last Industrials IPO to price was from Multi Packaging Solutions International Ltd. on October 21st), and Consumer Goods company Wayne Farms, Inc., which aimed to raise $250.0M in proceeds (the last Consumer Goods IPO to price was from Ferrari N.V. on October 20th).
Closing out March looks to be another healthcare company, as Sensus Healthcare Inc. seeks to raise a meager $20.0M when it lands – as both the seventh IPO to price this year and the seventh healthcare IPO – this week.
2016 may not be lighting the market on fire, but with the general lack of IPOs, and the ones that have debuted originating entirely from the healthcare sector, it is fairly consistent.
So we have that going for us, which is nice.