New issuers continued to test the waters in July, and while some companies delayed offerings amid concerns about trade deals, geopolitical tensions, and interest rates, an impressive 26 IPOs raised a combined $4.2 billion, the busiest month for deal flow since 2021 and the biggest month for proceeds in a year. Thanks to a bevy of micro-caps, monthly activity was above the 10-year historical average by deal count (20 IPOs) but lagged on proceeds ($4.6B). The month also had more deals but less proceeds than the prior-year period (14 IPOs, $6.5B), though July 2024 benefited from one very large deal (LINE; $4.4B). Six IPOs raised $100 million or more, led by billion-dollar issuers Figma (FIG) and NIQ Global Intelligence (NIQ). The six larger deals delivered mixed trading, but averaged an impressive 43% gain, driven almost entirely by the historic 250% pop from fast-growing software seller Figma, and to a lesser extent insurance play Accelerant (ARX), while the slower-growth LBOs struggled. Broader performance was skewed by a couple high-flying micro-caps, driving the overall average return up to 32%. The Renaissance IPO Index gained 3% in July, narrowly outpacing the S&P 500. The IPO pipeline stayed active, with seven issuers filing to raise $100+ million, four of which also priced or joined the calendar before month end. Blank check activity declined from its recent peak but held a decent pace, with 11 pricings and 12 new filings, and while merger completions remained muted, merger announcements picked up slightly from recent months. The IPO market is heading into its annual August pause, so we anticipate a mostly quiet calendar and a slowdown in notable new filings in the coming weeks. While hopes for a rate cut were dashed at month end, Figma’s debut, steadily improving market sentiment, and movement in the private backlog all point to more robust issuance in the fall, and we expect see that translate to more public filings in mid to late August.
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