In February, 10 IPOs raised a combined $2.0 billion, led by early debuts from a handful of $100+ million offerings. Deal flow was led by healthcare and senior facilities provider American Healthcare REIT (AHR) and Mexican discount grocer BBB Foods (TBBB), which together accounted for nearly two-thirds of the month's proceeds raised. Activity dropped off mid-month as the seasonal slowdown set in. Returns were mixed, driven by some poor-performing biotechs, and February IPOs averaged a flat return. After a rough start to the year, the Renaissance IPO Index reached a nearly two-year high in February, delivering a strong 16% gain to outpace the S&P 500 (+5%). Additions to the IPO pipeline slowed alongside issuance, but new filings from large tech names Reddit and Astera Labs grabbed headlines near month-end. Three blank check IPOs priced and one submitted an initial filing. Ten SPACs announced mergers, including Webull, and nine completed mergers, including Lotus Technology, with another 10+ upcoming votes scheduled at month end. The end of the first quarter is on the horizon, and movement in the backlog and improving returns signal a spring pickup for the IPO market. We expect to see a steady flow of deals through March, leading into more robust issuance during the busier summer months.
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