Thanksgiving has passed and December is finally here. We are officially ensconced in the holiday season! Later in the month, we can expect the IPO market to slow down as everyone puts on the brakes to celebrate and welcome the new year, but before we do that, let’s look back at November’s IPO output.
November continued a positive trend, building on October’s solid IPO count and exceeding it, bringing in 22 IPOs to the previous month’s 17 (which was itself an increase over September’s 14), and thoroughly crushing 2016’s November output of a mere two debuts. It wasn’t all good news, however, because while those 22 debuts were the most seen in a single month so far this year, the total proceeds marked a decrease from October. In fact, November’s $3.5B is only the 7th highest monthly total of 2017.
The largest IPO of the month, bringing in $658.4M of that $3.5B total, was Sogou, Inc., a Tech company that was one of three Chinese companies to come to market in November. That makes 12 Chinese IPOs this year, for total proceeds of $3.4B , the most since 2014’s 14 (for a staggeringly high $29.0B, thanks to Alibaba). Despite the lower proceeds, 2017 has seen three of the top seven deals to come out of China since 2010.
In terms of sector, Healthcare’s 35 debuts, Tech’s 24 debuts, and the Financial sector’s 17 IPOs are the top three in regards to deal count, while Tech, Energy, and Industrials lead the way proceeds-wise. November also welcomed 2017’s first Utilities IPO as Evocqua Water Technologies Corp. generated $575.0M, ensuring that every sector has seen at least one debut this year.
Here’s a look ahead at the current backlog, via the Ipreo Capital Markets November US IPO Brief: