The US IPO market’s 2017 recovery gained momentum in the second quarter, with 52 IPOs raising $11 billion, a two-year high in terms of deal count and proceeds. Just halfway through the year, the 2017 IPO market has raised more capital than all of 2016. Sectors were broadly represented, with a large pickup in growth names in technology and health care, which accounted for 50% of IPOs. The energy sector ground to a halt as oil prices continued their decline.
Most sectors traded positive, though tech IPOs drove the average return up to 11%, the seventh-consecutive quarter with double-digit gains. Notable names like Altice USA and Floor & Decor offered investors market leaders with large scale and growth. Blue Apron’s IPO was another sign that billion-dollar tech companies will come public when the need for capital outweighs the fear of valuation pushback. We believe that a number of companies continued to delay their IPOs, but a building backlog and a strong IPO market have set up a strong base for the 2H17.
– US IPO Market Sees 52 IPOs Raise $11 Billion
– Average IPO Gains 11%; Technology and Consumer Lead, Energy Still Lags
– IPOs Show Broad Sector Activity with a Shift to Growth
– Altice USA Raises $1.9 Billion in Largest Telecom IPO since 2000
– Private Equity and Venture Capital IPOs Rise to a Two-Year High
– Solid Foundation for an Active Second Half
Renaissance Capital is a global leader in providing pre-IPO institutional research and management of IPO-focused investment products.