Four sizable IPOs raised a combined $4.9 billion in May, the biggest month for proceeds since December 2021. May activity was well below the 10-year average for deal count (19 IPOs) but on par for proceeds ($5.0B), and the month now accounts for two-thirds of 2023 IPO proceeds to date thanks to its slate of large deals. Issuance was led by J&J’s Kenvue (KVUE), the latest spin-off to come to market, whose $3.8 billion offering singlehandedly more than doubled year-to-date proceeds to $7.3 billion. May IPOs averaged a 7% return from offer, driven by strong first days (+17%) that deflated in the aftermarket (-8%), and all four ended the month above issue. The Renaissance IPO Index saw choppy trading in May but trended up, finishing with a 7.6% gain to outperform the S&P 500’s 0.4% return. Three large IPOs joined the pipeline, one of which also began trading during the month (ATS); the other two were restaurant play CAVA Group (CAVA) and Taiwan-based Advanced Biomed (ADVB). Several other sizable names on file provided updates, led by compression services provider Kodiak Gas Services (KGS). Three blank check IPOs raised a combined $380 million in May, a slight pickup from the prior month, and just two companies listed via SPAC merger, the slowest month for completions since September 2020. Movement in the IPO pipeline and solid debuts from May’s deals could encourage more sizable names to pull the trigger on summer offerings.
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