While IPO market activity reached its lowest levels since the 1Q 2009, the market backdrop has steadily improved since the February lows and an IPO market restart could be near. With the second quarter less than a week old, we are already beginning to see signs of new life, highlighted below.
- Bats global markets launched $202 million IPO
This is the first non-biotech launch since February 1; of the six operating companies that have launched this year, all have postponed.
- Three new SEC initial filings
Global CRO inVentiv Group Holdings(VTIV.RC) filed to raise an estimated $500 million, Healthcare facilities REIT Global Medical REIT (GMR) filed to raise $100 million and China-based spot metals broker Yintech Investment Holdings (YIN) filed to raise $80 million.
- SecureWorks slotted for April IPO
The WSJ reported that the Dell spinoff is looking for an April IPO, launching as soon as April 11. It recently updated financials through January 31.
- Active pipeline remains robust highlighted by Nutanix's growth
In the last 30 days, 26 companies have submitted new or updated filings, representing a potential $6.6 billion in IPO proceeds. Of these companies, 70% (18) have been non-biotechs, including MGM Growth Properties (MGP), McGraw-Hill Education (MHED), US Foods Holdings (USFD) and United Guaranty (UGCO.RC), each of which could raise $500 million or more. The Nutanix (NTNX) update showed continued rapid growth with billings +102% year-over-year and positive cash flow from operations of $4.5 million in the most recent quarter, the first in its reported history.
