Thirteen IPOs raised a combined $7.3 billion in April, joined by two direct listings. While surging volatility in March weighed on new issuance early on, activity ended in line with April’s 10-year historical average by deal count (15) but well above by proceeds ($3.3B), thanks to a steady flow of sizable offerings in the back half of the month. The IPO window remained selective, open primarily for themes that worked in the 1Q like power infrastructure, defense, and biotech. Twelve IPOs raised $100 million or more, led by three billion-dollar deals: HVAC company Madison Air (MAIR), which completed the year’s largest offering to date, as well as defense contractor Arxis (ARXS) and nuclear tech developer X-Energy (XE). Both Madison Air and X-Energy notably benefitted from AI data center build-outs. The traditional IPOs trading at month end averaged a very strong 34% return from offer, and all but one finished above issue. The Renaissance IPO Index rebounded from its March low and posted a 16% return in April, solidly outpacing the S&P 500 (+10%) despite some turmoil in growth stocks near month end, and a still-unresolved war in Iran. Monthly IPO filings reached a year-to-date high as recovering market conditions and solid returns encouraged more IPO candidates to move forward with listing plans. Blank check issuance improved somewhat after stumbling in March, while merger activity also staged a slight recovery. With volatility trending down, strong recent performance, and more companies gearing up for listings (including rumors of SpaceX as soon as June), we expect to see the past month’s gradual pickup accelerate through the coming weeks. The IPO window has been selective, but it should open for a wider variety of companies with each new week of market stability.
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