Quarterly IPO Recap: Q2 2017

The story of 2017 so far has been one of rebounds.

2016 was a down year for the IPO market, and the first quarter of 2017 represented a solid bounce back, its 22 IPOs almost three times as many as we saw in the first quarter of 2016. The fact that March brought with it the biggest IPO of the year (and saw the Tech sector outpace 2016’s entire proceed total in just the four IPOs that landed) was further indication that 2017 had promise.

Looking at the second quarter totals, it’s safe to say that promise has not yet been broken.

Q2 2017 brought in 48 IPOs for $10.9B in total proceeds, exceeding the first quarter in deal count (22) but matching its dollar amount (much of which was due to the SNAP Inc. IPO). Not to keep beating a dead 2016, but not only were the quarters 48 IPOs more than double 2017’s first quarter output, it also nearly doubled last year’s 26 IPOs ($5.9B). 2017 continues to both outpace 2016 and keep the momentum going.

If the end of the quarter is any indication, it’s not exactly slowing down either.

The last week of the June was the busiest week of 2017 so far, as eight IPOs priced for $761.9M in total proceeds, helping make the second quarter the busiest quarter since 2015. (The last time eight IPOs priced was the week of September 18, 2016 which had eight IPOs for $1.4B in total proceeds.) Healthcare was responsible for four of those eight IPOs, and suddenly the sector has rebounded (on theme!) from an uncharacteristically slow first quarter as the 11 IPOs this quarter (after just three in Q1) brought it back atop the sector standings. Healthcare’s 14 debuts for $1.2B leapfrogged Technology’s 13 for $7.9B (9 in Q2) for most IPOs year to date.

Speaking of the Technology sector, another heavy hitter landed as Altice USA, Inc., a cable television provided, slotted in behind SNAP Inc. ($3.9B) as the second biggest IPO of the year (and third largest IPO since 2015) with its $2.2B in proceeds. The last time two Tech IPO’s offered $1.0B+ in proceeds in the same year was in 2014 with Mobileye N.V. and Markit Ltd bringing in $1.0B and $1.5B, respectively.

So the second quarter ended on a strong note. Will the third quarter continue the trend? let’s take a look at the Ipreo Quarterly US New Issuance Recap Q2 2017:

The current six month IPO backlog at the close of 2017’s second quarter stands at a total of 29 deals for anticipated total proceeds of $5.6B. Comparably, the backlog at the close of 2017’s first quarter stood at 33 deals as well, but for $4.5B, representing a quarterly proceeds increase of 25.0%. Moreover, 2017’s second quarter is consistent with 2016’s second-quarter backlog deal count, which also had 29 IPOs and expected to generate $3.5B in proceeds, representing an annual increase of 60.7% in terms of proceeds.

For a deeper dive into all of the quarter’s activity, including news on follow-ons and a closer look at the resurgence of the Energy IPO, click through to our Quarterly US New Issuance Recap Q2 2017.