Halloween is over and the march towards the holiday season has begun. Last month saw a schizophrenic September recover from a four-week shutout and rebound with a robust final fortnight. Would October capitalize on that momentum?
As a whole, the third quarter proved resilient, and while its 26 IPOs (for combined proceeds of $4.3B) were a severe drop from the second quarter’s 48 ($10.9B), it helped keep 2017’s deal count (96) above the pace set by the previous year (88). As we open the fourth quarter, it was up to October to get things off to a good start.
Thankfully, it did. October bested September’s 14 IPOs by three, and significantly increased proceeds from $2.6B to $6.3B, a marked improvement on a month to month basis. But despite Q3 managing to maintain 2017’s aforementioned lead over 2016 in terms of deal count, that hold may not last. October of 2017 marked the fourth straight month to see a decline in deal count from the same time period in 2016. And yet, last month brought in the most proceeds of any month this year, and trumped October 2016’s proceeds total, rising from $4.9B to $6.3B.
Here’s a look ahead at the current six-month backlog, via the Ipreo Capital Markets October US IPO Brief: