After the IPO market's slowest first quarter in six years, eight IPOs raised $725 million in April, a 75% y/y decline in deal count and a 94% decline in proceeds. Just two IPOs raised more than $100 million as the year's micro-cap boom continued. While the technology and healthcare sectors tied for most deals, the energy sector produced the largest offering, LNG play Excelerate Energy (EE). Blank check issuance dropped to its lowest level in two years, with just six SPACs raising $520 million, weighed down by rising withdrawals and poor post-merger returns. The IPO Index shed 19%, finishing the month at a 52-week low and underperforming the S&P 500. April IPOs averaged an eye-popping 265% first-day gain and a 50% return from offer, driven by volatile trading from a handful of small "pop-and-drop" issuers; the month's two $100+ million IPOs averaged a 12% return. Filing activity was about flat at 13 new IPO filings in April and featured a few notable names, like famed piano maker Steinway, though most of the new filers were small.
With the IPO Index down 38% year-to-date and the VIX Volatility Index once again above 30, the IPO window remains largely closed heading into May, though Bausch + Lomb's (BLCO) recent launch showed that we may still see a number of noteworthy deals from select industries or motivated sellers.
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