Eleven IPOs raised a combined $3.8 billion in January, the busiest month for both $100+ million and $1+ billion IPOs since late 2021. Six offerings raised $100 million or more, led by two billion-dollar deals: sports gear maker Amer Sports (AS) and Kazakhstani "super app" Kaspi.kz (KSPI). Remaining activity came from small, primarily China-based issuers. The month's IPOs averaged a 37% return from offer; the larger names averaged a 25% return from offer, thanks to positive trading both on the first day (22%) and in the aftermarket (2%). The Renaissance IPO Index started the year on less solid ground, trading off 10% in January, compared to a 2% gain for the S&P 500. The pipeline saw 18 additions during the month, including 10 that filed to raise $100 million or more, a two-year high. Several other large issuers on file also provided updates during the month. Just one blank check company went public and two submitted initial filings. Nine SPACs announced mergers and two completed mergers, with 21 upcoming votes scheduled at month end. Aside from the decline in the IPO Index and some volatility around Fed policy, the IPO market is off to a solid start in 2024, building on the positive developments of the prior year. With more deals on the calendar heading into February, and a steady flow of news from the backlog, we expect a continued pickup through the rest of the quarter, particularly after the Presidents' Day holiday heading into March.
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