U.S. IPOs Off to a Strong Start in 2017

Q1 2017 Priced IPOs

Thirty-seven IPOs priced in the first quarter of this year, raising $14.12 billion, according to Bloomberg Law data.

This is a stark increase over the first quarter of last year, which produced only 14 IPOs, raising $1.44 billion.

Similarly, the number of deals in Q1 2017 jumped by 164 percent and the dollar amount of funds raised increased by a staggering 881 percent compared to the first quarter of 2016.

Deal size also increased in the first quarter, averaging $382 million, up by 271 percent from the average of $103 million in first quarter last year.

The three largest IPOs in Q1 were: 

  • Snap Inc. (priced on Mar. 1; raised $3.91 billion)
  • Invitation Homes Inc. (priced on Jan. 31; raised $1.77 billion)
  • Silver Run Acquisition Corp II (priced on Mar. 23; raised $1.04 billion)

What Industry Sectors Are the Most Active?

The financial sector outperformed all other sectors in the first quarter of this year, with nine IPOs and $3.2 billion raised.  As in the previous four years, the financial and consumer, non-cyclical sectors outperformed the other industry sectors in the first quarter of 2017.

Top 3 Sectors IPOs Q1 2017

Also in the first quarter, the energy sector replaced the technology sector among the top three sectors by number of IPOs (5) and generated higher deal value ($1.6 billion) than the consumer, non-cyclical sector ($0.9 billion).

The top IPOs by dollar value in each of the top three sectors in Q1 were: 

  • Financial Sector – Invitation Homes Inc. (priced on Jan. 31; raised $1.77 billion)
  • Consumer, Non-Cyclical Sector – Laureate Education Inc. (priced on Jan. 31; raised $490 million)
  • Energy Sector – Keane Group Inc. (priced on Jan. 19; raised $584.71 million)

The technology sector delivered 18 IPOs in each of 2015 and 2016, raising $6.3 billion and $1.9 billion, respectively.  Interestingly, however, the technology sector was not in the top three sectors by either number of IPOs or dollar amount raised in Q1 this year.

For more on the latest trends in U.S. IPOs, Bloomberg Law subscribers can access our Quarterly IPO Market Update.