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.
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