Despite the broad market sell-off, the IPO market is on pace for the most active October since 2014. And the average return for this month's deals is an impressive 16.1%. In October, 19 companies have raised $4.4 billion, with up to three more listings by month-end.
| October IPO Stats | |
|---|---|
| IPOs | 19 |
| Proceeds Raised | $4.4 billion |
| Average IPO Return | 16.1% |
| Average First-Day Return | 21.6% |
| Average Aftermarket Return | -4.2% |
| Renaissance IPO Index (9/28-10/29) | -17.1% |
| Nasdaq Composite (9/28-10/29) | -12.4% |
| % Deals Priced Below the Range | 47% |
| % Trading Above Issue at Month-End | 68% |
| Top Sectors | Healthcare (9) Technology (5) Consumer Discretionary (3) |
Why Have October IPOs Performed Well?
Several deals have postponed, nearly half priced below the range (47%), some significantly, compared to just 1 of 23 in September (4%). Two-thirds of October IPOs trade above issue, compared to just 30% of September issuers. Average aftermarket returns are negative for both October (-4%) and September (-21%).
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