Thirteen IPOs raised a combined $4.4 billion in February, joined by two direct listings. Deal flow started off strong but stumbled mid-month as concerns around AI disruption sparked a sell-off in tech stocks and recent listings, and heightened volatility led to high-profile IPO price cuts and postponements. Activity was slightly above the 10-year historical average by deal count (13) but well above by proceeds ($2.2B), with February marking the second busiest month for sizable offerings since 2021. Eleven IPOs raised $100 million or more, a mix of biotechs, consumer names, and power infrastructure plays led by billion-dollar issuer Forgent Power Solutions (FPS). The month’s IPOs averaged a solid 22% return from offer (28% for $100mm+), boosted by significant gains from two late-stage biotechs (MANE and SGP). Equity benchmarks seesawed in February, and the Renaissance IPO Index ended off -2%, compared to -1% for the S&P 500. New filing activity fell from prior months, a combination of tenuous market conditions and the normal seasonal slowdown around preparation of 4Q25 financials, though the visible pipeline still had several notable names at month end. Blank check issuance held a brisk pace, with year-to-date totals reaching their highest levels since 2021, but merger activity remained low. The end of the first quarter is on the horizon, and while the recent volatility has certainly given both investors and IPO candidates pause, we’re optimistic that mostly strong returns from recent listings and signs of stabilizing market conditions will encourage a gradual pickup in issuance through March.
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