October IPO Recap

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.

The largest IPO of the month debuted out of Argentina and hails from the Industrials sector, as Loma Negra Compania Industrial Argentina S.A. generated $953.8M in total proceeds. Loma Negra is the largest Industrials IPO year-to-date. Meanwhile, the Healthcare sector remains on top in terms of deal count year-to-date with 29 deals, while the Technology sector keeps its top spot in regards to proceeds raised, with $10.1B.

Here’s a look ahead at the current six-month backlog, via the Ipreo Capital Markets October US IPO Brief:

The current 6-month backlog consists of 48 total IPO’s, seeking combined proceeds of $8.3 billion. This is comprised of 38 domestic and 10 international deals. The 48 IPO’s represent a large jump over the prior-year’s backlog, when only 17 deals were expected to generate $3.0 billion in the same time frame. Financials tops the list of expected deals by volume, with 10 deals expected, while Consumer Services is slated to bring in the highest proceeds currently backlogged at $2.2 billion. Meanwhile, Technology and Financials are seeing the largest increase in deal volume compared to the year-ago period, up 8 backlogged deals from just one year ago.
For a deeper dive into all of October’s activity, click through to our October IPO Recap 2017.