The US IPO market is still on track for the biggest year by proceeds since 2014, with a number of large deals teed up after Labor Day. As of August 29, there were 68 US IPOs publicly on file, 38 of which have submitted a new or updated filing since June 1. Based on historical trends and both public and confidential IPO filings, we believe that 50-70 US IPOs could raise over $15 billion between now and year end. New filings declined in August, mostly due to the absence of Chinese filers, deterred by the ongoing trade dispute and market volatility. Nevertheless, we enter Fall 2019 with a strong backlog of unicorns, large PE-backed deals, and biotechs publicly on file, with even more privately moving toward an IPO. The We Company leads the unicorn stampede, followed by Peloton and numerous other high-growth companies. Three PE-backed IPOs could each raise over $1 billion: cybersecurity provider McAfee, waste management firm GFL Environmental, and fast-growing orthodontics provider SmileDirectClub. On our Private Company Watchlist, at least 20 candidates have filed confidentially, selected underwriters, or otherwise indicated that an offering is imminent.
Key Takeaways:
- 2019 IPO Market To Reach Five-Year High in Proceeds, with 50-70 More IPOs Expected by Year-End
- Summer Filings Down from 2018 Due to Lack of Chinese IPOs
- Post-Labor Day IPOs Feature The We Company, Software Unicorns, and Biotechs
- Despite Market Volatility, Large Shadow Backlog Further Supports an Active Fall
- 2019 On Track to Reach About 170 IPOs
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