While August is typically a slow month for capital markets, monthly issuance reached double digits for the first time this year as 12 small IPOs raised a combined $196 million. The largest deal raised just $36 million, and the median deal size remained low at $15 million. August IPOs averaged a return of over 1,000% from offer due to a volatile uplisting that began trading on the last day of the month and popped over 13,000% (ATXG). Excluding that outlier, the group averaged a -2% loss as explosive first-day gains were offset by heavy aftermarket losses. Following a quiet July, four blank check IPOs raised $312 million in August, and eight companies listed via SPAC merger. The IPO Index finished with a -2% loss, outperforming the S&P 500’s -4% decline; the IPO market started the month strong before selling off in the second half of the month. There were nine additions to the pipeline in August, led by a $150 million filing from a VC-backed biotech. While we don’t expect a tidal wave of launches following the long Labor Day weekend, we believe that we’ll see a few major deals in the fall, with updates from several notable issuers over the past month.
Source: Renaissance Capital. Includes direct listings. Excludes SPACs. Also excludes unit offerings and companies that IPO’d at a market value of <$50mm (BRSH, SHPH, MOB, ONFO, JFBR, LUCY).
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