Thirteen IPOs raised a combined $11.5 billion in May, joined by one direct listing, marking the biggest month for proceeds since November 2021. A handful of very large names generated an outsized portion of total capital raised, led by AI chipmaker Cerebras’ (CBRS) $5.6 billion deal. As a result, activity was well above May’s 10-year historical average by proceeds ($4.3B) but in line by deal count (15 IPOs). Familiar themes of AI infrastructure, defense, and biotech continued through the month, but some energy, consumer, and other healthcare names also tested the market, with mixed results. Ten IPOs raised $100 million or more, and in addition to Cerebras, two others raised $1+ billion: geothermal energy developer Fervo (FRVO) and data center REIT Blackstone Digital Infrastructure Trust (BXDC), both of which benefited from AI tailwinds. All three ended the month with solid gains; while Fervo and BXDC traded up from day one, Cerebras deflated somewhat from its impressive first-day pop. Overall, the month’s traditional IPOs averaged a 5% return from offer, and about half finished above issue. The Renaissance IPO Index surged 17% in May, more than triple the S&P 500’s 5% return. There was a boom in new filings, led by SpaceX (SPCX), which finally flipped the S-1 for its historic estimated $75+ billion IPO; meanwhile, mega-IPOs OpenAI and Anthropic filed confidentially for fall listings. The SPAC market continued to regain momentum, and both blank check issuance and merger activity held relatively brisk paces. The IPO window remained fairly selective in May but showed signs of broadening during the month, and we expect to see that translate to both greater volumes and a wider variety of deals in the coming months. Strong returns and a solid pipeline have set the stage for a packed IPO calendar in early June, while more issuers are waiting until after SpaceX completes its listing.
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