BDO Initial Offerings Newsletter - Summer 2018

July 2018


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Strong First Half Has U.S. IPO Market on Track for Best Year Since 2014

After experiencing a major downturn in 2016, the U.S. market for initial public offerings (IPOs) bounced back significantly last year and that momentum has continued in 2018.  The U.S. IPO market has performed impressively in the first half of the year, with offering activity (+36%), total proceeds raised (+40%) and new filings (+36%) all increasing significantly from the same period of a year ago.  

Moreover, offering activity appears to be building momentum, with the number of IPO pricings jumping from 44 in Q1 to 61 in Q2, peaking in June with 28 deals. 

The momentum in pricing activity and the increased deal size has offerings and proceeds on pace to exceed 200 offerings and $50 billion in proceeds for just the third time since the turn of the century.  At the current pace, IPOs on U.S. exchanges are on track for the best year since 2014, when both offerings and proceeds reached the highest levels since the dot-com boom of 2000.*

Much of the turnaround can be attributed to a resilient stock market, the business-friendly new tax law, continued deregulation and, most importantly, the positive performance of the offerings that have come to market – both this year and last year.