The US IPO market is having a robust year, particularly in the technology and healthcare industries. Our ECM Specialist Domenico Positano discusses factors that have contributed to the healthy market.
US IPO desks gear up for a busy November
With over 150 issuers having gone public already in 2017 to raise more than $40bn in capital, deal activity has seen a definite recovery from a sluggish 2016. This year’s volume is the highest since $80bn was raised in 2014, though a third of that came from Alibaba’s record $25bn IPO.
Record high S&P and Dow Jones indices and a low volatility index (VIX) of ~10 helped shape market activity this year. IPOs priced below range account for 20% of US IPOs, levels on par with those seen during the financial crisis in 2009. Those IPOs are however currently performing 20% above water.
October was the busiest month of 2017 for US IPOs with 21 deals. In November, 20 issuers are slated to go public ahead of Thanksgiving week. If all 20 issuers price, the IPO desks will remain busy before the IPO window closes to prep for 2018.