Four IPOs began trading on Thursday after raising $1.5 billion, marking the IPO market's biggest day, week and month of 2016 based on number of deals and proceeds raised. The 31 deals year-to-date have raised $5.4 billion, down about 55% from last year on both measures, and have an average first-day pop of 4% and total return of 19%. In May, 15 deals priced, up from just 8 in April, and 8 in the entire 1Q16. Even as momentum builds, the tech sector has remained largely absent, though high-growth venture-backed Twilio's (TWLO) initial filing on Thursday is a positive sign for the window opening.
| 4 IPOs Debuted on May 26th, 2016 | ||||
| Issuer Business |
Deal Size ($mm) |
Market Cap ($mm) |
Price vs. midpoint |
First day return |
| US Foods (USFD) |
$1,022 | $5,033 | +2% | +8% |
| Second-largest US foodservice distributor LBO'd by KKR and CD&R. |
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| Cotiviti (COTV) | $238 | $1,765 | +6% | -10% |
| Provides analytics-driven payment accuracy solutions mainly to healthcare clients. |
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| Gypsum Management and Supply (GMS) | $147 | $855 | -5% | +4% |
| Leading North American distributor of wallboard and ceiling systems. |
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| Reata Therapeutics (RETA) | $61 | $237 | -27% | +19% |
| Developing therapies for life-threatening forms of pulmonary hypertension. |
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