May IPO Recap

It seems 2018 is going to continue being an up and down affair. In keeping with the trend, we might have predicted May would be an “up” month, and that’s exactly what happened.

After April’s meager production of 10 IPOs for $3.2B (down), which itself came after a solid March (up), it was time for May to follow the pattern. It grabbed the baton and gathered some speed, bringing in a total of 18 debuts and more than doubling April’s proceeds with $6.9B.

May saw the year’s biggest IPO to date, AXA Equitable Holdings, Inc., which brought in $3.2B, and was, along with GreenSky, Inc., one of two deals that generated over $1.0B. On top of easily besting April 2018’s slow performance, May 2018 also beat out May 2017’s proceeds ($6.9B vs. $3.8B) and deal count (18 vs. 16).

Sector-wise, Healthcare led the pack with six debuts, with Tech and Financials each debuting five IPOs. Energy and Industrials weighed in with one each. Amid all the inconsistency we’re seeing on a monthly basis, the solid performance of the Healthcare and Technology sectors is about the only consistent thing. At the end of the month, Healthcare and Tech are tied for 2018 in terms of deal count (18 each).

So May fulfilled its part of 2018’s up-and-down bargain, which means June is on deck for a down month. Let’s take a look at the current six-month backlog and see if that’s how it’s looking:

The current 6-month backlog stands at 36 IPOs, higher than the 32 IPOs reported one year ago. While US IPOs in the backlog stand at 28, lower than the 29 reported last year, international IPOs in the backlog have more than doubled from a year ago, coming in at eight, higher than last year’s three. One third of all of the IPOs in the backlog are coming from the Healthcare sector, which has 12 deals reported, more than twice the next largest sector, which is Industrials with five. The two largest filings in the backlog from May were both Chinese issuers hailing from the Consumer Services sector, as Uxin Ltd expects to raise $500.0M in proceeds and Puxin, Ltd. anticipates on generating $300.0M in proceeds.

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