A Crowded Pipeline For IPOs This Year: A Snapshot Of YTD IPO Activity by Mergermarket

Following the most active year for IPO listings on Mergermarket’s record in 2014, 2015 began with a crowded pipeline of IPO candidates. Despite this positive start to the year, 2015’s first half (H1) activity has yet to live up to 2014 in terms of both volume and value of listings. A total of 57 IPOs raising US$ 10.5bn to date represented a 47.2% decrease in offering size value for US-based companies listing globally, 53 less IPOs than last year.

IPO Activity

According to Mergermarket’s new Equity Capital Markets (ECM) platform and additional research by our team, IPOs backed by PE/VC firms have accounted for 63% of total IPO activity on the US markets so far in 2015, a slight increase in market share compared to YTD 2014.

IPO Activity

US companies have continued to come to market from a range of sectors, however Energy, Mining & Utilities (EMU) led the way by offering size with a market share of 37.2% – mainly driven by the top three US IPOs which accounted for 78% of the total EMU value In terms of new listings volume.

The market is treating new listings better than last year due to an improved aftermarket share price performance, with one month average returns improving from 18% to 24.5% year-on-year. “The window to go public remains open in sectors like technology, retail and energy… Considering the quality of the deals still in the pipeline, there is capacity for an active summer and fall,” says Dealreporter ECM reporter, Drew Singer.

IPO Activity

Other highlights include:

  • The Energy, Mining & Utilities (EMU) sector led the way by offering size with a market share of 37.2% – mainly driven by the top three US IPOs which accounted for 78% of the total EMU value In terms of new listings volume
  • The market is treating new listings better than last year due to an improved aftermarket share price performance, with one month average returns improving from 18% to 24.5% year-on-year

IPO Activity

US IPO snapshot

Year-to-date (YTD): 01-Jan to 10-Jun 2015

Criteria

All data is based on priced corporate listings where a book-build process was required. Excludes listing of funds, REITs, Special Purpose Acquisition Vehicles and follow-on offerings.

Period: based on announcement day of final offer price

Private equity/VC exit via IPO: Based on listing of private equity/ VC backed companies, including either full exit, partial exit or dilution.

Post-listing share price performance: Based on the closing price on the day of listing/one month post-listing.

For more stats and data on IPO activity this year, please see our full report HERE.