Eleven IPOs raised a combined $1.9 billion in May, joined by one direct listing. Activity was below the 10-year historical average (15 IPOs, $4.5B), though the month ended with more momentum than it started thanks to easing volatility and rising returns. There was a mix of large and small issuers, and five IPOs raised $100 million or more during the month, led by trading platform eToro (ETOR; $620mm). The group of sizable names averaged a very strong 22% return from offer, and all five ended above their offer prices. Overall performance was slightly lower, with all May IPOs averaging a 19% return. The Renaissance IPO Index made a stellar recovery from its April low and posted a 11% gain for the month, well above the S&P 500’s 6% return. The calmer conditions encouraged more companies to join the pipeline, and filing activity picked back up during the month. Six issuers filed to raise $100+ million, led by fintech Chime (CHYM). Blank check activity continued to rise, with 19 pricings and 16 new filings, though de-SPAC activity stuttered, with only a handful of merger announcements and completions. With the wind at its back, the IPO market is poised to continue its gradual comeback through the end to the 2Q, though changing tariff policies and macro uncertainty still pose a threat to the recent stretch of stability. As long as volatility remains low, returns hold up, and new issuers continue to join the pipeline, we expect to see more IPOs on the calendar in the coming months.
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