Eight IPOs raised a combined $1.2 billion in October, joined by one direct listing. Activity was well below the month’s 10-year historical average (22 IPOs, $5.1B). Six IPOs raised $100 million or more. With AI stocks under pressure in recent weeks, biotechs dominated the docket, accounting for seven of the month’s nine listings. Protein degrader biotech Lycia Therapeutics (LYCA) completed the largest offering, upsizing and pricing at the top of the range to raise $318 million before soaring 67% in its debut. Despite issuing a pricing announcement, SoftBank-backed Nigerian fintech OPay (OPAY) did not complete its $304 million US IPO and never commenced trading. The month’s traditional IPOs averaged an 8% return from offer, though nearly two-thirds finished below issue, as solid gains from a few offset mostly small losses. The Renaissance IPO Index sank 10% in October, compared to the S&P 500’s 1% loss. New filing activity slowed, with 19 companies submitting initial filings, though the pipeline got a major boost from AI giant Anthropic (ANT), which filed for an IPO we estimate could raise $75 billion and vie with SpaceX for the largest listing ever. Despite the recent pressure on AI stocks, Anthropic’s expected mid-November listing should be the main event of the 4Q. A strong debut could encourage the other large AI names on file to list before year end and set the stage for a robust start to 2027.
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