After a somewhat slow start, the July IPO market saw 14 deals raise a combined $6.5 billion. Activity was well below the 10-year historical average by deal count (21 IPOs), though it outpaced average proceeds ($4.7B), thanks to a $4 billion offering from cold storage REIT Lineage (LINE). In total, seven issuers raised $100 million or more, keeping pace with monthly activity from larger names so far this year. July IPOs averaged a 3% return from offer, though they were weighed down by some very poor performing micro-caps. The group of sizable deals averaged a 16% return, as solid first days (+10%) built slightly in the aftermarket (+6%). Markets seesawed during the month, driven by a flurry of economic and political news, and the Renaissance IPO Index ended July up +1%, in line with the S&P 500 (+1%). The pace of pipeline additions slowed ahead of the annual August pause, and just two larger issuers submitted new filings. The SPAC market continued to normalize in July, with six blank check IPOs pricing and nine submitting initial filings, though de-SPAC activity remained muted, with four merger announcements and six completions. As the IPO market heads into the summer slow period, all eyes are now on September, and we currently anticipate an active fall as companies look to list ahead of the US presidential election. Filing activity in the coming month will provide more visibility, but the 2024 IPO market is on pace to reach a three-year high for issuance, that is still below historical norms.
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