Ten IPOs raised a combined $1.5 billion in February, roughly in line with the 10-year median (10 IPOs, $1.3B). Five issuers raised $100+ million, the most since November 2021, led by solar tracker play Nextracker (NXT; $638mm). The rest of the month's IPOs were micro-caps, many of which delayed several times before pricing as regulators continue to require extra scrutiny of small deals. Activity was concentrated in the first half, dropping off mid-month as companies paused to wait for year-end financials. February IPOs averaged a -13% return from offer, though the group of $100mm+ deals averaged a solid 19% return, with three of the five finishing above issue. The Renaissance IPO Index seesawed after an explosive start to the year, closing out with a -1% loss compared to the S&P 500's -2%, though it ended the month on a positive trajectory. The pipeline had just one large addition, Cummins spin-off Atmus Filtration Technologies (ATMU), which filed for an estimated $350 million IPO. Five blank checks raised a combined $400 million, the most since last May, and eight companies listed via SPAC merger. Five blank checks joined the pipeline, breaking the longest filing drought in more than five years. The IPO market is still experiencing some volatility heading into March, but we expect activity to pick up in the coming months as more IPO candidates finalize 2022 results. Frac sand miner Atlas Energy Solutions (AESI) is set to lead the charge, launching its $387 million IPO at month-end.
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