June Boom: The Second Quarter’s IPO Market

After an inconsistent first half of the year, with the IPO market alternating between spunky and sputtering, the second quarter suddenly kicked into 2018 into high gear.

The Ipreo Blog has been chronicling the up and down nature of 2018’s new issuance activity all year, and according to the trend, after May’s strong output, June was supposed to be a down month. Instead, June blew up, and elevated the second quarter to highs not seen since 2015.

The second quarter of 2018 ended with 54 IPOs debuting for $14.2B in total proceeds, including lots in June. This marks the highest IPO count in a quarter since Q2 of 2015, and the $14.2B generated marks the second-highest quarterly proceeds since the $17.9B proceeds seen in Q4 of 2014. (Last quarter’s $16.2B intake actually beat it.)

May performed well, but it was June that really exploded, especially late. 27 IPOs were recorded, with 11 of them debuting in the last week. That marks the highest IPO count for a single week since the week of June 20, 2015, which debuted 13 IPOs for $2.8B in proceeds. It was also the fourth time this year that four IPOs have debuted in a one week span with an offer-to-one day percent change of 30.0% or greater, which has only happened six times since 2001.

Last week’s five Healthcare IPOs bring June’s total for the sector to 14 (highest since July of 2014, which had 16) and Q2’s total to 21 (highest since Q2 of 2015, which had 25). Tricida, Inc. priced as the largest Healthcare IPO of the year, 48.2% higher than the next closest, Autolus Therapeutics Limited at $172.5M, which priced the week before on June 21st. (Also of note, Neuronetics, Translate Bio and Tricida became the third, fourth and fifth Healthcare IPOs of the year to debut above their filing ranges.) BJ’s Wholesale was the biggest debut of the month, coming in at $733.1M.

Things are going to slow down this week, thanks to the July 4th holiday. No IPOs have priced on the week of July 4th (or the week after July 4th if it fell on a weekend) since 2014, when 2 IPOs debuted for $78.7M between June 30th-July 4th. In the past 10 years (2008-2017) only three IPOs have priced on the week of July 4th (or the week after July 4th if it fell on a weekend) – one in 2008, and the aforementioned two in 2014.

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 Q2 2018