Amid the typical summer slowdown, the month of August saw 7 small IPOs raise a combined $90 million, most of which were based in Asia. Activity rose slightly from last August, but was below the 10-year historical average by deal count (9 IPOs), and well below average proceeds ($1.6B), due to the absence of any sizable deals. With the postponement of China-based WeRide (WRD), no issuers raised $100 million or more, and the largest listing, YXT.com Group (YXT), raised just $25 million. August IPOs averaged an 18% return, driven by micro-cap JBDI Holdings (JBDI), which surged over 100%. August listings had mixed first-day returns – four of the seven broke issue but the group still averaged a 7% gain – and volatile but mostly positive aftermarket trading (+15%). After a significant sell-off at the start of the month, markets rallied and the Renaissance IPO Index finished up 3.6% in August, outperforming the S&P 500 (2.3%). The pace of pipeline additions was largely in line with recent months, as 22 issuers submitted new filings, including six sizable deals, mostly biotechs. The SPAC market continued to regain momentum in August, as seven blank check IPOs priced and five submitted initial filings. De-SPAC activity ticked up in August, with 11 merger announcements and 6 completions. As the IPO market emerges from the summer slowdown, a number of private companies are expected to weigh listings during the next two months, ahead of the US presidential election, although it’s clear that many pre-IPO candidates are waiting until the 1Q25. 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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