Renaissance Capital's 1Q17 US IPO Market Review

The US IPO market began 2017 with a far stronger start than the 1Q16. Momentum continued through the quarter, ending with 25 IPOs raising nearly $10 billion. A diverse set of companies from various sectors went public, ending biotech’s multi-year run as the top contributor to deal flow. The long-awaited debut of Snap’s $3.4 billion IPO, the largest of a US tech company since Facebook, and the success of high-growth software provider MuleSoft may presage increased tech activity. The average IPO gained 10% and every sector apart from energy finished with positive average returns. With 12 deals, private equity had an unusually active first quarter due to energy IPOs, but also featured industrial manufacturers like JELD-WEN and growth companies like Canada Goose. While total deal count was reduced by M&A and timing-related factors, the quarter’s moderate volume and positive returns laid a solid foundation for a year still on pace to see over 150 IPOs.

View our 1Q17 US IPO Review: IPO Market Snaps Back in the First Quarter

Key Takeaways:
• IPO Market Has a Solid Start, with 25 IPOs Raising $10 Billion
• Average IPO Gains 10%; Every Sector Positive But Energy
• IPOs Show Broad Sector Diversification; Tech Picks Up at Quarter-End
• Snap Completes Biggest IPO of a US Tech Company Since Facebook
• Private Equity Backs Half of Quarter’s IPOs; Venture Capital Offers Strong Returns
• Momentum Builds Ahead of Second Quarter