October IPO Recap

Halloween has passed, Thanksgiving approaches, and we have entered the homestretch of 2018. The first month of the fourth quarter lived up to its scary reputation as October saw that global markets take a hit and things stumble a bit all around. Except in the IPO market, where they stayed relatively consistent.

In fact, October’s 22 debuts exactly matched September’s total IPOs, with the $5.2B only a slight fall from the previous month’s $5.9B haul. October was the fourth month to price 20 or more IPOs of 2018, which is the first year to have that many months of high productivity since 2014, which had 8 months with 20-plus debuts, and six IPOs came to market above their filing range, the most of 2018. On the downside, October was only the third month of the year to price less proceeds than the comparable month of 2017 (after March and April).

October 2017 brought in 17 deals for $6.6B, which this October couldn’t match, despite StoneCo Ltd delivering a $1.4B boost. The Brazilian Tech company was the only deal to clear the $400.0M proceeds threshold, accounting for more than a quarter of the month’s total. StoneCo Ltd. was the seventh largest IPO of the year, and the 10th to bring in over $1.0 billion in proceeds.

In a familiar refrain, Healthcare led the way in terms of deal count, with its 12 IPOs, with Tech leading the way in proceeds, despite pricing half as many IPOs (6), thanks primarily to the aforementioned StoneCo Ltd offering. Consumer Goods and Basic Services filled in the last three debuts, with two and one respectively.

The current backlog lists a mere 16 IPOs, which is less than half of the 38 in the pipeline last October. What’s worse is that they’re expected to bring in just $2.01B, a 69.4% decline year-over-year.

Get all the details on last month’s new issuance activity in the full October IPO Brief!