Almost two-thirds of all IPOs in the 3Q were healthcare or tech, along with 7 of the top 10 best-performing IPOs. The healthcare sector had 14 offerings raise $4.0 billion; deal flow was driven by biotechs (7) and diagnostics companies (3), while two dental products makers represented about half of the sector’s proceeds. Three companies sold healthcare technology, two software makers and a platform for managing chronic illness.
The tech sector made a solid showing with 10 deals raising $3.5 billion. Eight tech companies went public at billion-plus market caps, mostly companies providing software for back-end systems.
The financials sector stayed active with a few banks and wealth managers. Four consumer discretionary companies included a cannabis grower, an exercise bike maker, an education group, and a restaurant chain.
While not counted in the table below, 14 blank check companies raised $3.0 billion. SPACs are again on track to hit a 10-year record in 2019.
Tech and healthcare made up most of the 10 best-performing IPOs in the 3Q.
The quarter’s top four were profitable. Top performer InMode broke issue on day one, but the fast-growing and profitable aesthetic device maker surged 59% in aftermarket trading.
The other nine averaged strong first-day trading (+36%), followed by modest losses (-2%). Kura Sushi USA became the first US restaurant IPO in four years. Phreesia, Medallia, and Cloudflare showed that investors can still stomach losses in the high-growth software space.
Read how other industries performed in our 3Q19 IPO Market Review.
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