The first quarter of 2018 proved to be a bit of an up-and-down affair.
January carried the momentum from 2017’s strong fourth quarter, launching the year with 17 IPOs for $9.6B in proceeds, but February saw things freeze up a bit, with only 7 IPOs coming to market.
Last week, the Blog took a look at March’s IPO market, which, thanks partly to a strong showing from China, brought some momentum back. March’s 12 IPOs helped the quarter close on an upswing, with China, a strong Tech showing, and large IPOs driving the first three months of the year.
Q1 2018 reported 36 IPOs for $16.2B in proceeds, which is the highest Q1 deal count figure since 2014, which had 65 initial offerings come to market for $12.0B. It also significantly outpaced 2017’s first quarter, which saw 22 IPOs for a total of $10.9B, and, when it comes to proceeds, 2017’s fourth quarter, which despite producing 12 more debuts (48), generated nearly $5B less ($11.5B)
Looking at individual sectors, while Healthcare led the way in deal count with 11, Tech had the highest proceeds, trumping Consumer Services’ $2.9B (via 6 IPOs) with a solid $6.3B, thanks primarily to the largest IPO of the year, PagSeguro Digital Ltd ($2.3B). The Brazilian issuer was the biggest of four IPOs that generated over $1.0B during the quarter, including iQIYI, Inc. at $2.25B, ADT Inc. at $1.5B, and VICI Properties at $1.4B.
As for what can be expected from the next few quarters, the six-month IPO backlog descended to 25 deals for $4.1B in proceeds from 33 IPOs for $4.5B in proceeds in the same period last year. Vine Resources, Inc. and IPSCO Tubulars, Inc. ranked as the largest issuers in the backlog as they both filed for $500.0M a piece. Notably, IPSCO Tubulars had previously postponed its IPO this year, citing market conditions, and hails from the Basic Materials sector. Year-to-date, no Basic Materials IPOs have made their market debut. Lastly, Morgan Stanley’s nine IPO deals currently hold 13.3% of the market share of all IPOs in the pipeline.
Get all the details on the first quarter’s new issuance activity, including a deeper dive into the Consumer Services’s record-breaking performance, in the full Ipreo Quarterly US New Issuance Recap Q1 2018