2017 proved to be a good year. For the IPO market, at least.
All year, the Blog has been reporting on the fortunes of the IPO market, and, for the most part, it’s been doing pretty well. After three quarters, the market had seen a slight increase over the first three quarters of 2016, thanks in part to a late September surge that righted things after a four-week stretch of no debuts. The last two weeks of the third quarter brought 14 IPOs to market, and heading into the year’s final three months, the question was whether that momentum would hold.
We’re happy to report that not only did the momentum hold, the IPO activity over the last three months cemented 2017 as a “bounce-back” year.
2017’s October, November, and December hauls amounted to 48 IPOs, matching the second quarter’s high. The 4th quarter of 2017 also generated $11.4B in proceeds, slightly eclipsing Q2’s $10.9B and hitting the highest mark of any quarter since the second quarter of 2015, which brought in 62 deals for $13.8B. The last quarter’s 48 IPOs nearly double Q3’s 26, the bulk of which landed in late September, and generated a comparatively meager $4.3B.
Continuing their yearly battle, both the Healthcare and Technology sectors debuted 13 IPOs, but Tech’s proceeds dominated, bringing in more than a third of the quarter’s total with $3.4B. The Financial sector finished as the runner-up, with total proceeds of $1.9B for the quarter.
Despite the quarter’s big number, only one Q4 IPO crossed the $1.0B mark, in the form of Argentina’s Loma Negra Compania Industrial Argentina S.A., an Industrials IPO that landed at $1.1B. Loma Negra was only Argentina’s second IPO of the year, after Despegar.com ($332.0M) in September.
The Ipreo Quarterly US New Issuance Recap Q4 2017 takes a look ahead at 2018’s backlog:
The current 6-month IPO backlog fell from Q3 to 31 issuers in the pipeline for $3.9B in expected proceeds for Q4. Nonetheless, this is up from the 25 issuers in the comparable period last year that were expected to bring in $2.9B in proceeds. From the REIT sector, Workspace Property Trust takes lead in terms of expected proceeds as it looks to bring in $526.5M in proceeds. Falling next in line is TFITAB Gida Yatrimlari A.S. , as it is expected to bring in $400.0M in proceeds from the Consumer Services space, making it one of the three Consumer Services issuers that land in the top ten filed deals. Lastly, no deals there are currently in the pipeline expected to raise more than $1.0B, dropping from two expected to raise that much during the third quarter.
The fourth quarter of 2017’s IPO market wrapped up a tumultuous year with something of a rousing finale, elevating the market back to heights it hadn’t reached since 2015. We’ll be watching all year to see how 2018 fares, in what is sure to be about four quarters of unpredictability.
Read the full Ipreo Quarterly US New Issuance Recap Q4 2017